Chapter 14: The Economy

Describe how white-collar work, blue-collar work, and farming have changed proportions in the U.S. economy from 1900 to the present.

From 1900 to the present, white-collar work has steadily increased and reached quadruple the 1900 level. Blue-collar work rose for a while and then declined to half its 1900 value. Farming dropped from nearly one-third of the workforce in 1900 to only a small percentage of the workforce today. Learning Objective: LO 14.6 Summarize work in the postindustrial United States: women at work, the underground economy, stagnant paychecks, and work and leisure.

Compare capitalism and socialism in terms of ownership of the means of production, competition, and the profit motive.

Ownership of means of production: in capitalism, by individuals; in socialism, by the public. Competition: in capitalism, used to determine production and set prices; in socialism, central committees plan production and set prices, and there is no competition. Profit motive: in capitalism, the pursuit of profit is the reason for distributing goods and services; in socialism, there is no profit motive in the distribution of goods and services.

__________ is any item, whether sea shells or gold, that serves as a medium of exchange. a. Money b. The gold standard c. Barter d. Stored value

a. Money

__________ in place within the policies of the United States. a. Quite a few elements of socialism are b. Social Security's independence from the government is c. Market-force-blind capitalism is d. No socialist practices are

a. Quite a few elements of socialism are

Tammy and Timmy regularly trade one thing for another; for example, this week Tammy agreed to cut Timmy's hair, and in exchange Timmy agreed to rake the leaves that have fallen onto Tammy's sidewalk. They are engaging in __________. a. bartering b. purchasing c. using fiat money d. sharing aero-currency

a. bartering

Marguerite grows up hearing all around her—from her parents and other family members as well as the society at large—that she has the right to an education and the right to delay taking on adult responsibilities until she has one; this indicates Marguerite lives in a(n) __________ society. a. economically prosperous b. custom-bound c. traditional d. economically deprived

a. economically prosperous

The total amount of goods and services a nation produces is known as the __________. a. gross domestic product b. deposit receipt c. total output d. medium of exchange

a. gross domestic product

The gap between rich and poor Americans is __________. a. historically high b. narrowing c. slightly higher than it has been in the past d. about the same as it has always been

a. historically high

A stockholders' revolt involves the __________ rising up against the __________. a. owners; workers b. stockholders; owners c. workers; stockholders d. workers; owners

a. owners; workers

Which societies were the first in which not everyone's work was needed for food production? a. pastoral and horticultural societies b. industrial and postindustrial societies c. hunting and gathering societies d. subsistence economies

a. pastoral and horticultural societies

Hunting and gathering societies had a(n) __________ economy; they lived off the land and had few belongings. a. subsistence b. modern c. pastoral d. industrial

a. subsistence

Capitalism responds to __________. a. the law of supply and demand b. edicts from central planning committees c. the public, which owns the means of production d. pure socialism

a. the law of supply and demand

Stephen Schwarzman, one of the members of the global superclass, stated that __________ people make the world's major decisions. a. 5 to 10 b. 20 to 50 c. 100 to 250 d. 2,000 to 5,000

b. 20 to 50

The poorest fifth of the U.S. population receives __________ of the nation's income. a. 1 percent b. 3 percent c. 10 percent d. 33 percent

b. 3 percent

__________ is the idea that capitalist and socialist systems, in taking on ways of doing things from each other, will ultimately create a mixed economic system. a. Communism b. Convergence theory c. Market forces d. Divergence theory

b. Convergence theory

__________ solidarity is the way people feel united by engaging in the same or similar work. a. Durkheimian b. Mechanical c. Organic d. Forced

b. Mechanical

Democratic socialism is __________. a. an economic system where only individuals own businesses b. a hybrid economic system c. pure capitalism d. an economic system where only the government owns businesses

b. a hybrid economic system

Josie makes and sells flavored ice treats from her apartment during the summer. Because this takes place in the underground economy, she __________. a. is reported to the government b. avoids paying taxes on this income c. is worries about getting fired d. is heavily taxed

b. avoids paying taxes on this income

According to the author, the biological and economic enmeshment of the emerging __________ society will probably increase the amount of surplus and trade even more. a. industrial b. biotech c. hunter-gatherer d. new agricultural

b. biotech

Carlos often did not have much money with him, but he shopped anyway, using a __________, which allows its holder to buy goods and be billed for them later. a. debit card b. credit card c. deposit receipt d. currency

b. credit card

A __________ is used as a form of money. It states that a certain amount of goods are on deposit in a warehouse or bank. a. gold standard b. deposit receipt c. currency d. credit card

b. deposit receipt

In what century was the steam engine invented? a. seventeenth b. eighteenth c. nineteenth d. twentieth

b. eighteenth

__________ believe(s) the three major trading blocs that have emerged in the world benefit people globally, not just the multinational corporations. a. Conflict theorists b. Functionalists c. Durkheim d. Small-town residents

b. functionalists

The proportion of women working for wages __________. a. goes down with a higher level of education b. goes up with a higher level of education c. is moderately increasing today d. has plummeted in recent years

b. goes up with a higher level of education

A transaction in e-gold is actually the transfer of ownership of a specified amount of __________ stored in a bank vault. a. silver b. gold c. paper money d. euros

b. gold

At least two corporations—International Telephone & Telegraph Company (ITT) and Royal Dutch Shell—have been involved in __________. a. trying to discourage capitalism b. having someone killed c. trying to artificially keep the wages of workers high d. schemes to distribute the bulk of their earnings to the global poor

b. having someone killed

Sarah stopped at the supermarket to quickly pick up some milk, bread, cat litter, and a tomato. When she saw the total come up on the screen, she swore that it was a dollar higher than it should be. But no, the prices were all correct on her receipt. It was just that they had all gone up. So had the cost of clothing, cars, and most everything else. This was a case of __________. a. the gold standard b. inflation c. the increased purchasing power of the dollar d. stored value

b. inflation

With __________, top companies form a network that can be likened to an intricate web. a. multinational corporations b. interlocking directorates c. socialist governments d. an excess of allegiance to workers and the United States

b. interlocking directorates

In Durkheim's __________ solidarity, we all depend on others to fulfill their jobs. a. management b. organic c. corporate d. stockholder

b. organic

The __________ enabled agricultural societies. a. use of child labor b. plow c. subsistence economy d. steam engine

b. plow

The United States follows __________, where the means of production are privately owned and profits are pursued, but the welfare of the population is protected by a system of laws. a. state socialism b. state capitalism c. laissez-faire capitalism d. pure capitalism

b. state capitalism

In a way, __________ is reversing the Industrial Revolution's shift from working at home to working in an office. a. the underground economy b. teleworking c. the quiet economy d. the connection to seasonal rhythms

b. teleworking

When an entire industry is controlled by a single company, this is called __________. a. state capitalism b. laissez-faire capitalism c. a monopoly d. pure capitalism

c. a monopoly

Governments __________ of e-cash. a. provide grants for b. encourage c. are wary d. are unaware of

c. are wary

Corporations dominate an economy in __________. a. a stockholder revolt b. mechanical solidarity c. corporate capitalism d. corporate neosocialism

c. corporate capitalism

A system of producing and distributing goods and services is known as a(n) __________. a. subsistence economy b. market c. economy d. hunting and gathering society

c. economy

Presidents of the United States __________ get involved in arranging sales of U.S. goods to other countries. a. never directly b. from Republican backgrounds only c. from both major parties d. only prior to 1920 were able to

c. from both major parties

A __________ is how people decide what various things are worth so they can exchange items. a. coin system b. deposit receipt c. medium of exchange d. currency

c. medium of exchange

Those who run __________ lose national loyalty and instead come to feel more connected with others of their own superclass. a. small businesses b. all corporations c. multinational corporations d. a small minority of corporations

c. multinational corporations

Of twenty-nine countries around the world, the percentage of women employed in the United States ranks __________. a. first b. fourth c. nineteenth d. twenty-seventh

c. nineteenth

Fiat money is __________. a. backed by stored value b. a type of inflation c. not backed by gold d. a form of barter

c. not backed by gold

A deposit receipt or a currency has a(n) __________, which is defined as the goods stored and held in reserve that back up a receipt or currency. a. barter value b. gross domestic product (GDP) c. stored value d. inflation reserve

c. stored value

One important feature of socialism is __________. a. the lack of a monopoly b. profit-making c. the lack of a need to compete d. distribution of goods according to people's ability to pay

c. the lack of a need to compete

In laissez-faire capitalism, __________. a. the government controls the market b. central committees control the market c. is not affected by any government action d. the market is tightly controlled by the public

c. the market is not affected by any government action

Researchers have found that when it comes to working, women are more likely to __________, while men are more likely to __________. a. want to work by themselves; want to work on teams b. prefer to work longer hours; prefer to work shorter hours c. want to work on teams; want to work by themselves d. emphasize power; emphasize encouragement

c. want to work on teams; want to work by themselves

The three largest multinational corporations are headquartered in __________. a. the United States b. the United Kingdom c. Japan d. China

d. China

Which of the following statements about the gold standard is true? a. All economies follow it. b. It permits countries to print as much paper money as they want. c. The United States follows it. d. In 1971, the United States dropped the gold standard.

d. In 1971, the United States dropped the gold standard.

In __________, the means of production are privately owned. a. socialism b. convergence theory c. laissez-faire socialism d. capitalism

d. capitalism

The main anticapitalism argument is that such a system __________. a. focuses too much on the public good b. leads to too much social equality c. does not respect individual rights d. creates inequity

d. creates inequity

The cost of an item purchased is electronically withdrawn from the purchaser's bank account using a __________. a. credit card b. deposit receipt c. fiat currency d. debit card

d. debit card

A corporation is __________. a. unable to be sued b. very distinct legally from a person c. a global division of labor d. legally speaking, a person

d. legally speaking, a person

Currency is __________. a. gold b. fiat money c. e-cash d. paper money

d. paper money

Describe the "quiet revolution."

"Quiet revolution" is the term sociologists use to refer to the consequences of so many women joining the paid workforce. The quiet revolution has transformed self-concepts, spending patterns, and relations at work as well as relationships with boyfriends, husbands, and children and views of life. Learning Objective: LO 14.6 Summarize work in the postindustrial United States: women at work, the underground economy, stagnant paychecks, and work and leisure.

Back in 1973, which six characteristics did Daniel Bell ascribe to the postindustrial society?

(1) A service sector so large that most people work in it; (2) a vast surplus of goods; (3) even more extensive trade among nations; (4) a wider variety and quantity of goods available to the average person; (5) an information explosion; and (6) an interconnected global village. Learning Objective: LO 14.1 Emphasizing inequality, summarize the broad historical shifts in economic systems.

Arrange these types of mediums of exchange in chronological order, from oldest to newest: fiat currency, coins, barter, debit cards, currency, deposit receipts, e-cash.

(1) barter; (2) coins; (3) deposit receipts; (4) currency; (5) fiat currency; (6) debit cards; (7) e-cash.