Deck 14: Capitalism and the Economy

Question 1

The rise of large-scale production,the influx of peasants to urban areas to find work,and the rise of a system of wage labor caused the ________ system to become obsolete in favor of a new system of legal currency.

A) barter
B) neighborhood
C) exchange
D) trade

Answer 1

A

Question 2

Serfs were the lowest class in the feudal system and were bound to the land they worked,yet they were not slaves.They were different from slaves because they could:

A) own property.
B) be sold.
C) choose whether to give the lord any of their earnings.
D) be traded to other lords.

Answer 2

A

Question 3

Adam Smith demonstrated with his pin factory example that:

A) capitalism constantly destroys old technologies in favor of new ones.
B) factory production cannot create products as desirable as craft production.
C) factory production leads to social problems,including alienation and poverty.
D) by dividing labor,factory production increases output by making it more efficient.

Answer 3

D

Question 4

In a capitalist economic system,the price and distribution of goods and services are determined by what?

A) number of workers
B) monetization
C) location
D) competition

Question 5

Toma is a nineteenth-century peasant who moved to a city to find work.Back in his village,most of Toma's transactions were bartered-swapping an animal for cloth or potatoes for a tool.In the city,monetization governs wage labor,which means that:

A) workers can barter among themselves if they wish.
B) legal currencies are used in financial exchanges.
C) money flows from the poor to the rich.
D) workers experience alienation because they can no longer barter.

Question 6

Jenny lives in a society in which there is a strong norm against mixing business with pleasure.Work and leisure activities are physically separate,occurring at different times,on different days,at different places,and often with different people.Jenny lives in a ________ society.

A) feudal
B) modern capitalist
C) premodern agricultural
D) communal

Question 7

Under feudalism,lords exchanged land with the vassals in return for what?

A) money
B) authority
C) land
D) protection

Question 8

What effect did the agricultural revolution in Europe have on the transition to capitalism? The agricultural revolution in Europe:

A) slowed down the development of capitalism.
B) helped capitalism develop.
C) occurred thousands of years before capitalism and was unrelated.
D) kept the capitalist economies of some countries underdeveloped.

Question 9

Which term refers to a legally recognized person who shares many of the rights of a human individual as well as the ability to act as a legal entity by entering into contracts or owning property?

A) oligopoly
B) vassal
C) service sector
D) corporation

Question 10

Because the monetary system is increasingly depersonalized,George Simmel argues that it is now possible to:

A) work for someone you don't like.
B) marry someone from a lower class.
C) have true friendships.
D) do shoddy work.

Question 11

In the early days of the new monetary system,stockholders were more willing to invest in corporations because of ________,which limits their financial responsibility to whatever they invested in the company.

A) payment per unit
B) limited liability
C) the enclosure movement
D) political arbitrage

Question 12

According to Adam Smith,the most efficient way to produce something is:

A) with the use of skilled craftsmen who control the entire production process.
B) with a mechanical assembly line that carries the product to the workers.
C) through the use of interchangeable parts.
D) through a division of labor that breaks production into its constituent parts.

Question 13

At the end of the eighteenth century and the beginning of the nineteenth century,a massive transition was propelled by the development of new technologies,including:

A) the cotton gin and distiller.
B) the power loom and steam engine.
C) the telephone and telegraph.
D) motorcars and tractors.

Question 14

Adam Smith argues that money is inherently social because:

A) it requires an employment relationship between an employer and employee.
B) it requires complex social and governmental institutions to ensure that markets work properly.
C) any and all economic exchange requires two partners.
D) economic activity draws people together in contexts where they can discover friendship or affinity.

Question 15

During the agricultural revolution,the enclosure movement caused many former serfs to move to cities in search of work and led to the rise of:

A) wage labor.
B) apartment rentals.
C) the police force.
D) wars between England and India.

Question 16

George lives in fifteenth-century England.He is bound to the land but does not own it.He works the land but must give a portion of his harvest to the landowner.In return,he gets protection from roaming bandits and thieves.George is a:

A) serf.
B) slave.
C) lord.
D) vassal.

Question 17

You are the lord of an estate.During the enclosure movement in Tudor England,what did you likely do with some of your common land?

A) built a factory on it
B) kicked off the commoners who had used the land for grazing
C) divided it up among more serfs
D) started to grow crops on it

Question 18

How did the enclosure movement change the economy in the early Tudor period in England? The enclosure movement:

A) caused the price of land to rise.
B) undermined the lords' source of authority.
C) created a large,new pool of urban labor.
D) made agriculture untenable in England.

Question 19

Adam Smith,the father of liberal economics,determined that groups of individuals pursuing their own self-interest manage to stay intact and not fall into civil strife because individuals:

A) are focused on their own issues and do not realize the chaos around them.
B) pursuing self-interest in an environment of others acting similarly will lead to healthy competition.
C) will strive to make their contribution stand out.
D) compete with people they know but feel strangers are no threat in the business world.

Question 20

Georg Simmel saw the development of monetary payment systems as part of a historical evolution leading to:

A) the depersonalization of exchange.
B) treating humans like animals.
C) a communist society.
D) bringing the working class and elites together.

Question 21

Some products,such as fitness tracking devices like Fitbit,are economic successes.Because they add value to the overall economy,Adam Davidson refers to them as:

A) rent seeking.
B) productivity enhancing.
C) alienating.
D) revolutionary.

Question 22

A system of payment whereby workers are paid a set amount of money not tied to the quality of the raw materials,accidents,or other exigencies in the production process refers to:

A) payment per unit.
B) piecework.
C) hourly wage.
D) wage labor.

Question 23

In terms of the evolution of payment and exchange,wage labor is more developed than piecework payment because under wage labor:

A) the employer assumes responsibility for the quality of the raw materials,the technology,and the production process.
B) workers are paid not for a direct service but for the sum total of their services.
C) workers control the pace and conditions of their labor.
D) more personal relationships between worker and employer are created.

Question 24

At Thanksgiving dinner,college student Janie expresses her dreams to her parents.Her aunt says,"I'm not sure that's realistic,honey!" Janie says,"I'm a postfeminist! That's why I expect to ________."

A) be a stay-at-home mom of a large family
B) be a single mother
C) combine marriage to an egalitarian man with motherhood and a successful career
D) avoid having children,hence allowing my career to blossom

Question 25

Feminist sociologists claim that the family wage is a patriarchal bargain because it implies that:

A) women depend on a man's wage.
B) women aren't smart enough to get a high-paying job.
C) the money men earn is worthless.
D) a family needs to have a male head.

Question 26

One good thing about a salary,according to Simmel,is that:

A) you are always paid higher than a wage earner.
B) it is the same as piecework payment: one can barter to get a higher wage.
C) workers still get paid,even if the electricity goes out for the day and no work gets done.
D) it lasts long after a person has retired.

Question 27

According to sociologists Jerry Jacobs and Kathleen Gerson,because workers want to advance in their careers,many avoid taking full advantage of:

A) health insurance benefits.
B) education opportunities.
C) the family wage.
D) family-friendly office policies.

Question 28

An honorarium is similar to a:

A) wage; you get paid for what you produce.
B) gift for something you have agreed to do for someone,like giving a speech.
C) salary; you always know what you can expect in the form of money for your service.
D) scholarship; you are paid before you have performed your service.

Question 29

Karl Marx described workers as:

A) in control of the process of production.
B) above the capitalist system.
C) hard workers benefiting from capitalism.
D) alienated from the process of production.

Question 30

Angela is writing a story about a "typical American family." She researches the work lives of the statistically typical family and concludes that her story will feature:

A) a husband and wife who both work.
B) a husband who is the main provider.
C) a single mother who is the main provider.
D) a husband,wife,and live-in grandparents who all work.

Question 31

If you are a salaried worker and you miss a day of work,how does your salary change?

A) It doesn't change.
B) You have to pay your employer back a set amount.
C) You have to pay a fine.
D) Your pay is reduced by eight hours' worth of payment.

Question 32

Karl has been hired to paint a house blue,but he mixes the color wrong,and it turns out purple instead of blue.Under which wage system(s)would he be responsible for paying for new paint?

A) piecework and payment in kind
B) wage labor
C) payment in kind
D) piecework

Question 33

Martin decides to start a religious movement of people who both work and worship with intensity.He studies religious history and decides to create a theology that will make people feel insecure about their eternal destiny so that they will work hard in an attempt to prove themselves worthy.Martin's religious movement is an application of whose theory?

A) Karl Marx
B) Georg Simmel
C) Adam Smith
D) Max Weber

Question 34

Barbara Risman equated gender inequality,in the form of marriage,to:

A) religion.
B) sexism.
C) feminism.
D) racism.

Question 35

________ trade agreements,such as NAFTA,encourage business at a regional or worldwide level.

A) Unilateral
B) Bilateral
C) Multilateral
D) Polylateral

Question 36

In addition to attracting new workers,Ford's payment system:

A) brought more women into the labor force.
B) created the glass ceiling.
C) created gender equality among married couples.
D) reinforced women's economic dependence at home.

Question 37

Globalization in the twenty-first century is characterized by:

A) the movement of labor across the world quickly and efficiently to those places it is most needed.
B) the rise of the West,with U.S.and European financial centers dominating global trade.
C) the emergence of new markets,new means of exchange,new players,and new rules that are intensifying worldwide interdependencies.
D) fusions of previous economic forms,such as feudalism and bartering.

Question 38

Serena works for a shoemaker in a small shop,doing a variety of tasks.At the end of the week,the shoemaker offers her a choice: She can be paid with cash,or with her choice of a pair of shoes.Serena chooses cash,which confirms Georg Simmel's theory that says ________ is part of a historical evolution of economy that has many advantages.

A) the drive for exchange
B) the development of the corporation
C) depersonalized exchange
D) the shift from feudalism to bartering to in-kind payment

Question 39

What characterized the "new markets" that are part of globalization?

A) They are primarily financial and not bound by geography; anyone anywhere with the proper equipment can participate.
B) They are concentrated in a few technology centers,and the rest of the world is being left behind.
C) The relative scales of trade flow and capital are higher than ever.
D) International governmental organizations are regulating the global economy in more aggressive ways.

Question 40

With regard to the family wage,women:

A) got paid the same as men if they were single.
B) were seen to be working just for "extra money," so they were not paid the same as men.
C) actually made more than men,especially if they were single mothers.
D) had to marry to get a family wage equal to that of their husbands.

Question 41

Sarah has a master's degree in disaster relief but hasn't found work in her field.In the last year,she worked as an Uber driver for several months,then sold honey at a farmer's market,and then found three months' work on a temporary contract with a local publishing company.Sarah is not working full-time in her field; rather,she is underemployed in the:

A) feudal economy.
B) postindustrial alienation economy.
C) gig economy.
D) productivity enhancing sphere.

Question 42

The personal bankruptcy rate in America is higher than it has ever been.Why? Do any theories or theorists help explain this trend?

Question 43

The Bell Telephone Company,which for decades was the only provider of telephone service in the United States,was a(n):

A) oligopoly.
B) autocracy.
C) market organization.
D) monopoly.

Question 44

Karl Marx felt that workers in a capitalist society were alienated in four ways.List these four ways.For each way,use one of the photographs to explain your answer.You could explain how the factory workers are alienated or how the shoemaker is not alienated.

Question 45

Compare and contrast the theoretical perspectives of the transition to capitalism of two of the following: Adam Smith,Georg Simmel,Karl Marx,Max Weber.How are they similar? How are they different? Which of the two you selected do you believe provides the most useful framework for understanding capitalism,and why?

Question 46

Describe the evolution to capitalism starting with feudalism through the Industrial Revolution.Which two or three changes in social and economic arrangements were most important,and why did they matter?

Question 47

FBI consultant Robert Hare claimed that in the pursuit of profits for shareholders,corporations exhibit many of the same traits as:

A) psychopaths.
B) philanthropists.
C) narcissists.
D) hedonists.

Question 48

Some critics claim that the Carlyle Group uses insider political knowledge,or ________,to dominate heavily regulated markets.

A) government monopoly
B) political arbitrage
C) corporate oligopoly
D) political intrusion

Question 49

What is a major reason unions are on the decline in the United States today?

A) It is felt that unions increase productivity.
B) The government does a better job at collective bargaining for workers.
C) People don't trust unions,saying they are corrupt and outdated.
D) The Freedom of Association Act was repealed in 1949.

Question 50

Some people consider corporations to be "psychopathic" because corporations:

A) routinely kill employees in the name of consensus.
B) maintain long-term relationships even when they are harmful.
C) have multiple personalities.
D) show little regard,remorse,or guilt for harming others.

Question 51

How would you describe recent relations between employers and unions? Employers:

A) embrace unions.
B) tolerate unions.
C) actively try to undermine unions.
D) have eliminated unions.

Question 52

In discussing financial changes that influenced the economic volatility of recent years,Adeel Qalbani describes how commercial banks are mostly ________,but investment banks are mostly ________.

A) heavily regulated; less regulated
B) productivity enhancing; rent seeking
C) ethical; corrupt
D) for the poor; for the wealthy

Question 53

There are two producers of wagon wheels that together are the exclusive providers to a large community.The executives of these companies meet to set minimum prices and production levels,thereby ensuring that they each will make a higher profit than they would in a free market.This is an example of a(n):

A) monopoly.
B) oligopoly.
C) autocracy.
D) dictatorship.

Question 54

One common strategy for attracting the most buyers is:

A) lowering production cost.
B) flooding the market.
C) making charity contributions.
D) supporting labor unions.

Question 55

Corporations are considered people because:

A) people own shares in them.
B) they are entities distinct from their owners.
C) they originated as family-held firms.
D) they can vote.

Question 56

Offshoring occurs when firms:

A) contract some of their work out to independent foreign companies.
B) move all or part of their operations abroad to developing nations.
C) actively scan foreign markets for new places to sell goods and services.
D) transfer high-level executives abroad to be closer to production.

Question 57

Explain Henry Ford's family wage.How did economists and politicians view women's wages in Ford's time? Why do people today who believe in gender equality see the family wage as problematic?

Question 58

Max Weber said that a person who pursues profit removed from any sense of right and wrong has:

A) sunk into alienation.
B) embraced the spirit of socialism.
C) parceled out his soul.
D) engaged in open and free competition.

Question 59

An increasing number of workers are working from home today.This blurs the line between work and family.Compare how the blurred lines between family and work are similar (or dissimilar)to an economy dominated by small-scale artisan labor/subsistence farming.

Question 60

It is sometimes difficult to determine whether large corporations such as the Carlyle Group,or Wall Street overall,are expanding the economy in ways that broaden the economic value available to everyone or just amassing money at other people's expense.Using Adam Davidson's framework,a company that doesn't add value but just rearranges existing dollars for its own benefit is called:

A) rent seeking.
B) productivity enhancing.
C) alienating.
D) revolutionary.

Question 61

One of the most important changes in the American economy is the creation of the service sector.What is the service sector? What are two important challenges that service workers face,and how are the challenges linked to the nature of the service sector?

Question 62

Corporations can dominate the market by offering the lowest prices,thereby attracting the most buyers.List and describe three strategies that corporations use to maximize profits.