Sociology Chapter 16: The Economy and Work

agricultural revolution

(5000 yrs ago) made the economy a distinct social institution based on: -agricultural technology -specialized work -permanent settlements -trade

Self-employment

6.8% workers in U.S. self employed *many professionals fall into this category, but most have blue_collar jobs

By the early 1960s, most of the people in the U.S. labor force had which type of job? a. white-collar b. blue-collar c. pink-collar d. farming

a

Contrasted to socialist economic systems, capitalist economic systems typically a. generate more economic inequality. b. generate less economic inequality. c. generate about the same level of inequality. d. do not generate any social equality.

a

In a socialist economic system, "justice" amounts to a. trying to meet the basic needs of all in a equal manner. b. doing whatever helps boost company earnings. c. freedom of the marketplace. d. All of these are correct.

a

Over the course of human history, revolutionary changes in which of the following have brought great changes to the economy? a. production technology b. the family c. population size d. natural resources

a

conglomerate

a giant corporation composed of many smaller corporations

communism

a hypothetical economic and political system in which all members of a society are socially equal

postindustrial economy

a productive system based on service work and high technology

State Capitalism

an economic and political system in which companies are privately owned but cooperate closely with the government

Welfare capitalism

an economic and political system that combines a mostly market based economy with extensive social welfare programs

Socialism

an economic system in which natural resources and the means of producing goods and services are collectively owned

Capitalism

an economic system in which natural resources and the means of producing goods and services are privately owned

Corporations

an organization with a legal existence including rights, liabilities, separate from that of its members

the information revolution made 3 significant changes:

1. changed from tangible products to ideas 2. moved from mechanical skills to literacy skills 3. from factories to almost anywhere

under welfare capitalism:

-government may own some large industries such as transportation and the mass media -most industry is privately owned but highly regulated by the government -high taxation of the rich helps pay for extensive gov services for all i.e. Sweden/ Italy

Capitalism results in:

-greater productivity -higher overall standard of living -greater income inequality -freedom to act according to self-interest i.e. U.S. mostly capitalist economy

Socialism results in:

-less productivity -lower overall standard of living -less income inequality -freedom from basic want i.e. China & Venezuela

As societies industrialize, a smaller share of the population works in which of the following locations? a. farms b. factories c. assembly lines d. All of these are correct.

a

secondary sector

the part of the economy that transforms raw materials into manufactured goods *significant share of economy in low-, middle-, high-income nations (25%-35% of economy) i.e. automobile and clothing manufacturing

economy

the social institution that organizes a society's production, distribution, and consumption of goods and services

Modernization theorists see large corporations as a. offering little to help poor nations seeking to develop. b. unleashing the productive power of capitalism to speed development in poor nations. c. responsible for the debt crisis in many poor nations. d. needing the technology currently available in poor nations.

b

Over the course of the last century, the number of people involved in agricultural work a. has remained about the same. b. has declined steadily. c. has increased dramatically. d. has stayed the same, although a larger share of workers are immigrants.

b

Read the four descriptions below. Which of them DOES NOT apply to a profession? a. having theoretical knowledge of a field b. working for a large, well-established company c. having authority over clients d. professing a community, rather than an individual, orientation

b

The concept "state capitalism" refers to a system in which a. the government owns and operates most economic enterprises. b. privately-owned companies cooperate closely with the government. c. the government owns but does not operate most economic enterprises. d. large businesses control the government.

b

The development of agriculture was set in motion by a. changes in the church. b. using animals to pull the plow. c. the discovery of writing. d. the discovery of oil.

b

The economy first became a distinct social institution during which historical stage of technological development? a. hunting and gathering societies b. agrarian societies c. industrial societies d. postindustrial societies

b

The social thinker whose ideas supported the operation of a free-market economy most was a. Thorstein Veblen. b. Adam Smith. c. Karl Marx. d. Max Weber.

b

Turning metals into automobiles is work that falls within the a. primary sector. b. secondary sector. c. tertiary sector. d. All of these are correct.

b

Which category of the U.S. population is showing the greatest labor-force increase in terms of percentage? a. white men b. Hispanic women c. white women d. African American women

b

Which of the following new sources of energy launched the Industrial Revolution? a. the gasoline engine b. the steam engine c. wind power d. electricity

b

Which social institution do most sociologists claim has the greatest effect on society as a whole? a. the family b. the economy c. the political system d. religion

b

Yesterday's family farms have given way to a. importing most foods from abroad. b. collectively-run farming communes. c. corporate agribusinesses. d. smaller, individually-run farms.

c

As a social institution, the economy a. produces and distributes goods and services. b. guides the consumption of goods and services. c. operates in a relatively predictable manner. d. All of these are correct.

d

Computers are having which of the following effects on the workplace? a. Computers are deskilling labor. b. Computers are limiting workplace interaction. c. Computers enhance employers' control of workers. d. All of these are correct.

d

Dependency theorists see large corporations as a. the key to meeting the needs of people in poor nations. b. helping poor nations to develop local industries. c. a major source of foreign investment for poor nations. d. intensifying global inequality.

d

Early factories in New England, where the Industrial Revolution first developed in the United States a. employed women for half the wages paid to men. b. manufactured textiles. c. discouraged any worker organizations. d. All of these are correct.

d

Globalization of the economy means that a. world regions specialize in one sector of economic activity. b. more and more products pass through several nations. c. a small number of businesses represent a huge share of global economic output. d. All of these are correct.

d

In recent decades, union membership a. has risen in the United States and other high-income nations. b. has risen in the United States, but not in other high-income nations. c. has declined in the United States, but not in other high-income nations. d. has declined in the United States and other high-income nations.

d

In the United States, about what percentage of the labor force performs tertiary sector work? a. 15 percent b. 35 percent c. 55 percent d. 85 percent

d

Dependency theorists claim that multinationals:;

make global inequality worse by pushing poor countries to produce goods for export and making them more dependent on rich nations

Many large corporations operate as:

multinationals-producing and distributing products in nations around the world

labor unions

organizations of workers that seek to improve wages and working conditions through various strategies, including negotiations and strikes

Most people with jobs in the primary labor market would probably rather have jobs in the secondary labor market.

false

Most self-employed persons are professionals.

false

Oligopoly refers to any company that operates in more than one country.

false

One effect of computer technology is giving workers greater power over their employers.

false

Socialism has spread around the world to the point that, today, a majority of the world's nations have a socialist economic system.

false

Socialism is also called a "laissez-faire" economic system.

false

The U.S. workforce is becoming more "white," even as immigration rates rise.

false

The concept "state capitalism" refers all productive enterprises in a country being owned by the government.

false

The concepts "primary sector," "secondary sector," and "tertiary sector" refer to how productive a sector is in terms of economic value

false

The economy did not emerge as a distinct social institution until the Industrial Revolution.

false

The invention of the corporation is generally taken as the point at which a postindustrial society emerged.

false

Large corporations dominate many markets in the global economy.

true

Less than 2 percent of today's U.S. labor force works in agriculture.

true

One key to industrialization was creating new sources of energy.

true

Prostitution and selling illegal drugs are typically part of the underground economy.

true

Socialist economies create greater economic equality than capitalist economies, but with a lower overall living standard.

true

Taken together, local, state, and federal governments are the U.S.'s largest single employer.

true

The Information Revolution requires workers to gain literacy skills instead of the mechanical skills that were important during the Industrial Revolution.

true

The concept "paraprofessional" refers to work that requires skills, but typically lacks a broad theoretical knowledge of a field.

true

The economy organizes the production, distribution, and consumption of goods and services. T or F

true

The global economy pays little regard to national borders.

true

The self-employed are more likely to have blue-collar jobs than white-collar jobs.

true

The use of computers by workers tends to limit workplace interaction.

true

industrial revolution

(began around 1750); expanded the economy based on: -new sources of energy -centralization of work in factories -specialization and mass production -wage labor

Unemployment

*many causes, including the operation of the economy *8.9% country unemployed (2011) *highest risk: young people and African Americans

Conglomerates account for:

*most corporate assets and profits (i.e PepsiCo., General Motors) *corporations are linked through interlocking directorates *recognizing that corporate linkages and the domination of certain markets by large corporations reduce competition, federal laws forbid monopoly and price fixing

corporations form:

*the core of the U.S. economy Incorporation *makes an organization a legal entity *shields owners wealth from lawsuits brought against the company *can result in a lower tax rate on the company's profits

jobs in the postindustrial U.S. economy

Agricultural work-1.7% of jobs Blue Collar work-13% of jobs White-collar work-85% of jobs

Information technology affect on work

Changing the workplace and how people work computers are: -deskilling labor -making work more abstract -limiting interaction among workers -increasing employers control over workers -allowing companies to re-locate work

A conglomerate is a. a giant corporation composed of many smaller corporations. b. a corporation in the manufacturing sector. c. a corporation engaged in both legal and illegal activity. d. any company that completely dominates a market.

a

Socialism is an economic system in which there is a. collective control of production. b. private ownership of property. c. pursuit of individual profit. d. All of these are correct.

a

The United States is a mostly capitalist nation because a. the vast majority of productive businesses are privately owned. b. we have a system of free elections. c. of our high living standards. d. of the extensive government control of the economy.

a

The concept "primary labor market" refers to a. jobs that provide extensive benefits to workers. b. jobs typically taken by teenagers. c. jobs that require no particular training or experience. d. jobs that offer little pay and low security.

a

The concept of "global economy" refers to a. economic activity that moves across national borders. b. the fact that only a few countries now contribute to the global economy. c. the fact that economic output is under the control of global political leadership. d. All of these are correct.

a

What percentage of today's U.S. workers are self-employed? a. 6.8 percent b. 26.8 percent c. 46.8 percent d. 66.8 percent

a

What sector of the economy generates raw materials directly from the natural environment? a. primary sector b. secondary sector c. tertiary sector d. None of these are correct.

a

Which of the following concepts refers to an economy based on computer technology? a. postindustrial economy b. industrial economy c. technological economy d. agrarian economy

a

An example of a European country with a mostly private economy and extensive social welfare programs is a. Germany. b. Sweden. c. Spain. d. All of these are correct.

b

Capitalism is an economic system in which there is a. government control of production. b. private ownership of property. c. pursuit of collective goals. d. All of these are correct.

b

Contrasted to socialist economic systems, capitalist economic systems are typically a. equally productive. b. more productive. c. less productive. d. not concerned with productivity.

b

Concerning the issue of personal freedom, capitalist systems emphasize people's _____, while socialist systems emphasize people's _____. a. collective needs; personal needs b. freedom from basic want; freedom to pursue their self-interest c. freedom to pursue their self-interest; freedom from basic want d. social needs; material needs

c

In a capitalist economic system, "justice" amounts to a. doing what is best for society's poorest members. b. everyone being more or less economically equal. c. freedom of the marketplace allowing people to follow their self-interest. d. All of these are correct.

c

In the United States about what share of the population aged sixteen and older is in the paid labor force? a. 18 percent b. 38 percent c. 58 percent d. 78 percent

c

Looking at economies around the world, the primary sector is the largest in a. high-income nations. b. middle-income nations. c. low-income nations. d. It is the same size in all nations.

c

The concept "oligopoly" refers to a. any corporation with more than $1 billion in sales. b. the largest company in a particular field. c. domination of a market by a few producers. d. a large company operating in all three economic sectors.

c

The expansion of office work marks the growth of the economy's a. primary sector. b. secondary sector. c. tertiary sector. d. None of these are correct.

c

The text describes three technological revolutions that transformed all of social life. Which of the following is NOT one of them? a. the Agricultural Revolution b. the Industrial Revolution c. the Immigration Revolution d. the Information Revolution

c

Which of the following DOES NOT describe the operation of a socialist economy? a. collective orientation b. government control of production c. laissez-faire economy d. command economy

c

Which of the following concepts refers to a political and economic system that combines a mostly market-based economy with extensive social welfare programs? a. capitalism b. socialism c. welfare capitalism d. communism

c

Which of the following statements about the Information Revolution is NOT correct? a. There was a shift from making tangible products to generating ideas. b. There was a shift from mechanical skills to literacy skills. c. There was a shift from farming to turning raw materials into finished products. d. There was a shift from working in factories to working almost anywhere.

c

Which of the following would be included in the operation of the underground economy? a. a teacher who is on disability leave for a long time b. an executive who illegally "borrows" funds from the company c. a taxi driver who fails to report most of her income d. food servers who are paid less than the minimum wage

c

The Industrial Revolution was based on a. the spread of cottage industry. b. people beginning to work in their homes. c. a decrease in productive specialization. d. new sources of energy.

d

The postindustrial economy is defined by a. the spread of factories. b. mass production of goods and services. c. manufacturing of raw materials. d. service work and computer technology.

d

What is the hypothetical economic and political system in which all people in society are socially equal? a. capitalism b. socialism c. welfare capitalism d. communism

d

Which of the following countries best exemplifies a system of state capitalism? a. the United States b. Great Britain c. Australia d. Japan

d

underground economy

economic activity involving income not reported to the government as required by law

global economy

economic activity that crosses national borders

Adam Smith's idea was that, in a capitalist system, government tells businesses what to produce and consumers what to buy.

false

Although there are many privately-owned companies in the United States, most of the U.S. economy is owned and operated by the government.

false

Compared to agricultural work, industrial jobs involve less specialization.

false

In recent years, the lowest unemployment rates in the United States have been among teenagers.

false

In the United States, union membership is higher today than ever before

false

Monopoly refers to a corporation that operates within a single sector of the economy.

false

under State Capitalism:

government works in partnership with large companies by: *supplying financial assistance *controlling foreign imports i.e. Japan/Singapore

the postindustrial economy propelled by the ___________ __________ is based on:

information revolution; (began around 1950) -shift from industrial work to service work -computer technology

primary labor market

jobs that provide extensive benefits to workers *these jobs involve interesting work, high income, benefits, and job security

secondary labor market

jobs that provide minimal benefits to workers *these jobs have lower pay, less job security, fewer benefits, and provide less personal satisfaction.

profession

prestigious white-collar occupation that requires extensive formal education

Modernization theorists claim that multinationals:

raise living standards in poor countries by offering them more jobs and advanced technology

oligopoly

the domination of a market by a few producers

monopoly

the domination of a market by a single producer

social institution

the major spheres of social life, or societal subsystems organized to meet human needs

primary sector

the part of the economy that draws raw materials from the natural environment *is of greatest importance in low-income nations (26% of economy) i.e. agriculture, fishing, mining

tertiary sector

the part of the economy that involves services rather than goods *is the largest sector in low-, middle-, high-income nations (49%-73%) i.e. secretarial work, sales, teaching

A corporation is an organization with a legal existence apart from that of its members.

true

A recent trend in the United States is a steady rise in the share of small businesses owned by women.

true

Agricultural production is part of the primary sector of the economy.

true

Capitalism is more productive than socialism, and capitalism also creates greater economic inequality.

true

Combining a market-based economy with an extensive social welfare program yields what is called "welfare capitalism."

true

Conglomerates are giant corporations composed of many smaller corporations.

true

Denmark is an example of a European nation with a system of welfare capitalism in which high taxes pay for extensive government-provided benefits.

true