Deck 2: Wealth and Power: the Bias of the System

Question 1

Marx asserted that capitalism has within it the seeds of its own destruction because of __________.

A) the lack labor-saving technology
B) the inevitability of monopolies
C) centralized government control
D) control of the state by the majority
Answer B

Answer 1

B

Question 2

One strategic reason that multinational corporations move to developing countries is that __________.

A) there are fewer regulations, which translates into more profits
B) the unemployment rate is much higher in developing countries
C) more regulations make factories safer for workers
D) there are fewer job seekers in the United States.
Answer A

Answer 2

A

Question 3

There is a(n) __________ connection between the growth of multinational corporations and the reduction of semiskilled and unskilled jobs in the United States.

A) beneficial
B) irrelevant
C) direct
D) unknown
Answer C

Answer 3

C

Question 4

Which of the following is an example of an indirect interlock?

A) Smith serves on the board of Company A, and Jones serves on the board of competing Company B. However, Smith and Jones both serve on the board of Company C.
B) Smith serves on the board of Company A, Jones serves on the board of Company B, and Miller serves on the board of Company C. None of them serve on any other board.
C) Smith, Jones, and Miller all serve on the board of Company A. None of them serve on any other board.
D) Smith, Jones, and Miller all started Company A. None of them now serve on the board.
Answer A

Question 5

According to your text, Adam Smith would __________.

A) be against competition
B) not recognize capitalism in America today
C) not believe in the free market
D) approve of socialism
Answer B

Question 6

The linkage between corporations when an individual serves on the board of directors of two companies is called a(n) __________.

A) oligarchy
B) plutocracy
C) shared monopoly
D) interlocking directorate
Answer D

Question 7

In contrast to socialism, capitalism is characterized by __________.

A) autocratic rule
B) free market competition
C) centralized government
D) state ownership of corporations
Answer B

Question 8

Critics argue that capitalism, because its objective is profit and not enhancing the human condition, promotes __________.

A) democracy
B) individual fulfillment
C) equality
D) inequality
Answer D

Question 9

The authors argue that many of the problems of U.S. society largely result from the __________.

A) maldistribution of power
B) conspiracy of the power elites
C) system being undermined by those who criticize it
D) system being undermined by the poor and disadvantaged

Question 10

Recent tax policies in the United States have __________.

A) exacerbated the unequal distribution of wealth
B) decreased the national debt
C) decreased the political influence of the wealthy
D) decreased the costs of running for public office
Answer A

Question 11

Contrary to classical economic theory, capitalism is now dominated by huge corporations that __________.

A) act in the best interest of the majority of Americans
B) distribute wealth equally among managers and employees
C) respond to the demands of the market
D) control the demands of the market
Answer D

Question 12

According to Marx, capitalism will produce a class of oppressed people called the __________, bent on destroying it.

A) plutocracy
B) proletariats
C) oligopoly
D) capitalists
Answer B

Question 13

According to Marx's theory of capitalism, the social class in power controls the economy primarily by __________.

A) military force
B) centralized governmental power
C) owning the means of production
D) controlling nearby countries
Answer C

Question 14

Megamergers affect the entire economy in that they __________.

A) decentralize capital
B) eliminate jobs
C) increase corporate debt
D) increase union membership
Answer B

Question 15

The average U.S. worker would have to work nearly __________to make a CEO's annual salary.

A) 41 years
B) 62 years
C) 233 years
D) 421 years
Answer C

Question 16

Which of the following is an example of a shared monopoly?

A) Company A, Company B, and Company C together supply 20 percent of all mufflers in the United States.
B) Company X, Company Y, and Company Z together supply 60 percent of all beds in the United States.
C) Company B, Company U, and Company Y together supply 30 percent of all snow tires in the United States.
D) Company T, Company O, and Company Y together supply 45 percent of all doll dresses in the United States.
Answer B

Question 17

By 2014, the average CEO (chief executive officer) of a Fortune 500 corporation was paid ____ times more than the average worker

A) 10
B) 100
C) 200
D) Over 300
Answer D

Question 18

__________ are corporate enterprises with holdings and subsidiaries in several different countries.

A) International cooperatives
B) Plutocracies
C) Oligopolies
D) Transnational corporations
Answer D

Question 19

In 2011, the average CEO of a Fortune 500 company was paid __________ times more than the average worker.

A) 50
B) 106
C) 303
D) 511
Answer C

Question 20

Which of the following is an example of a direct interlock?

A) Smith and Jones both sit on the board of Company A.
B) Smith sits on the board of Company A and holds stock in Company A.
C) Jones sits on the board of Company A and Company B.
D) Jones and Smith are co-CEOs of Company A.
Answer C

Question 21

The popular will is sometimes thwarted in the Senate by the extraordinary power of small states with __________.

A) a large independent base
B) a large democratic base
C) large populations
D) small populations
Answer D

Question 22

According to your text, the government has the power to expand or reduce the gap between the haves and the have-nots but politicians have prioritized __________.

A) health care reform
B) the reduction of the size of government
C) the reduction of taxes for the wealthy
D) campaign finance reform
Answer C

Question 23

The popular belief in democracy works to the advantage of the __________.

A) power elite
B) working class
C) working poor
D) military
Answer A

Question 24

At the national level, lobbying in 2014 was a __________ business.

A) $3.3 million
B) $300 million
C) $3.3 billion
D) $3.22 billion
Answer C

Question 25

According to your text, the power elite are engaged in __________.

A) a conspiracy to disadvantage the poor
B) ending subsidies to business and industry
C) making sure the voice of the powerless is heard
D) making decisions that advantage the haves at the expense of the have-nots
Answer D

Question 26

Requiring a __________ in order to register to vote is an example of a recent tactic states use that disenfranchises certain groups of potential voters.

A) government-issued ID
B) party donation
C) background check
D) language test
Answer A

Question 27

In the Citizens United case the Supreme Court interpreted political donations as __________.

A) only allowable for low-income candidates
B) a restriction on equal access to democracy
C) a form of speech protected by the Constitution
D) an unconstitutional influence over policymakers
Answer C

Question 28

The high cost of financing a political campaign __________.

A) enhances the democratic process
B) ensures the "little guy" will have a voice
C) favors independently wealthy candidates
D) encourages voting from disenfranchised groups
Answer C

Question 29

__________ is a political system in which the will of the majority prevails and decisions are made to maximize the common good.

A) Capitalism
B) Socialism
C) Democracy
D) Plutocracy
Answer C

Question 30

The power elite can get its way without actually being mobilized because the choices of decision makers are often limited by __________.

A) government checks and balances
B) systemic imperatives
C) the political power of the power elite
D) congressional filibusters
Answer B

Question 31

Contributors of large sums of money to political campaigns receive which of the following benefits?

A) Free publicity for their companies
B) Full tax exemptions
C) Influence over the positions of politicians on public issues
D) Free trips with the candidate to national events
Answer C

Question 32

The McCain-Feingold law __________.

A) prevented candidates from using their own money to win elections
B) limited the use of "soft" money in federal elections
C) limited the giving of large sums to affect election outcomes
D) granted subsidies to candidates with lower fundraising totals
Answer B

Question 33

The economic and social constraints on political decision makers that promote the status quo refers to __________.

A) systemic imperatives
B) capitalism
C) socialism
D) interlocking directorates
Answer A

Question 34

527s are advocacy groups that __________.

A) finance political ads that are directly connected to a specific candidate
B) finance political ads while not directly campaigning for a specific candidate
C) provide illegal financing of federal political campaigns
D) provide direct political lobbying for specific candidates
Answer B

Question 35

The Bipartisan Campaign Reform Act __________.

A) prevented candidates from using their own money to win elections
B) limited the use of soft money in federal elections
C) limited the giving of large sums to affect election outcomes
D) allowed unlimited donations from individual donors
Answer B

Question 36

By paying less in taxes, the affluent are in effect reducing their support from programs that __________.

A) help the poor
B) maintain roads
C) promote finance reform
D) reduce racism
Answer A

Question 37

Which of the following is a characteristic of the systemic imperatives the authors discuss?

A) The upheaval of the status quo every few decades
B) The allowance of dissidents to protest in the name of free speech
C) The inertia of institutions that happens because no change is easier than change
D) Participation in the political system by those who represent a wide array of interests
Answer C

Question 38

According to the text, which of the following is a means through which power can be wielded?

A) Consensus
B) Cooperation
C) Democracy
D) Control of Ideology
Answer D

Question 39

The implication in Chapter 2 is that oligarchs are likely also __________.

A) socialists
B) plutocrats
C) Marxists
D) in poverty
Answer B

Question 40

The high cost of financing political campaigns favor __________, who have an easier time raising money.

A) incumbent candidates
B) African American candidates
C) female candidates
D) first-time candidates
Answer A

Question 41

According to the authors of the text, capitalism will, if unhindered by government regulation, result in individual self-fulfillment and general material progress for all of society.
Answer FALSE

Question 42

By reducing taxes, the government has eliminated waste, given the poor more money to spend and invest, and improved the economy.
Answer FALSE

Question 43

The U.S. government has directly intervened in the domestic affairs of foreign governments to __________.

A) institute social welfare policies
B) institute labor and safety laws
C) prevent the rise of capitalist competition
D) protect U.S. corporate interests
Answer D

Question 44

The bailout of airlines by Congress shortly after the terrorist attacks of September 2001, without similar relief to fired airline workers, represents an example of a __________.

A) government subsidy
B) trickle-down solution
C) congressional gerrymander
D) congressional filibuster
Answer A

Question 45

By building roads for logging, the government is providing a __________ to the timber industry.

A) monopoly
B) cloture
C) filibuster
D) subsidy
Answer D

Question 46

Which of the following represents an example of the argument that the powerless bear the burden of U.S. government policy?

A) Only 10 percent of college-aged men were drafted in the Vietnam War.
B) Subsidies to social services for the poor were increased during the 2007 recession.
C) Rebuilding priority was given to the poor after Hurricane Katrina.
D) Government subsidies are overwhelmingly given to small businesses.
Answer A

Question 47

According to the text, the problems in U.S. society result from the distribution of power and the form of the economy.
Answer TRUE

Question 48

Power in the United States is concentrated in a power elite, and this elite uses its power for its own advantage.
Answer TRUE

Question 49

Marx hypothesized that free enterprise would eventually destroy itself and be replaced with a new economic form.
Answer TRUE

Question 50

After the Great Recession hit in late 2007, federal and state governments cut ____________.

A) tax breaks for homeowners
B) subsidies to big business
C) social programs for the poor
D) international defense spending
Answer C

Question 51

Income inequality is increasing in the United States.
Answer TRUE

Question 52

Political decisions are likely to be limited by preexisting conditions that serve to maintain the status quo.
Answer TRUE

Question 53

The economy of the United States is purely a free enterprise system.
Answer FALSE

Question 54

One of the reasons that the government tends to be pro-business is because government officials are more likely to __________.

A) support socialism as an economic ideology
B) hear arguments and receive contributions from the poor
C) hear arguments and receive contributions from the powerful
D) support a liberal political ideology
Answer C

Question 55

The authors of your text point out that the flood of election money sabotages democracy in which of the following ways?

A) There is increased access for all people to run for office.
B) The have-nots of society are equally represented among decision makers.
C) The influence of campaign donors makes it harder for legislators to solve social problems.
D) Everyone has a voice in how leftover campaign money is spent after an election is over.
Answer C

Question 56

Which of the following programs were reduced or eliminated after the Great Recession in 2007?

A) Social programs for the disadvantaged
B) Subsidies for businesses
C) Tax breaks for corporations
D) Tax breaks for homeowners
Answer A

Question 57

Political lobbyists represent a balance of viewpoints that legislators weigh in their decision making.
Answer FALSE

Question 58

The relationship between U.S. foreign policy and corporate interests is demonstrated by which of the following actions?

A) The embargo of the sales of military arms overseas
B) The government support of tyrannical governments if they support U.S. multinational corporations
C) The government policy of nonintervention in the domestic affairs of foreign governments to protect U.S. corporate interests
D) The government providing foreign aid that primarily goes to benefit the poor in other countries
Answer B

Question 59

the principles of "trickle-down" economics are adopted by the government because __________.

A) government officials who tend to come from the business class bring a conservative ideology to office with them
B) government officials who tend to come from activist backgrounds bring a liberal ideology to office with them
C) government officials are more likely to hear the arguments of the powerless, who are in most need of support
D) government officials are more likely to hear the arguments of the powerful, who want to make sure the needy are taken care of
Answer A

Question 60

According to the text, capitalism rewards the efforts of all enterprising individuals.
Answer FALSE

Question 61

If Smith serves on the board of Company A, Jones serves on the board of Company B, and Smith and Jones both serve on the board of Company C, then there is a __________ between Companies A and B.
Answer direct interlock

Question 62

The transfer of publicly funded technologies to private corporations is an important example of a government __________ to big business.
Answer subsidy

Question 63

__________ is the nation with the most millionaires.
Answer United States

Question 64

How has the Citizens United ruling affected the role of small donors to political campaigns?

Question 65

Why are U.S. corporations shifting more and more of their total assets outside the United States? What are the consequences of the shift in production to other countries?

Question 66

Why it is problematic that the information we receive is increasingly under monopolized control? How do these monopolies affect social, cultural, and political landscape?

Question 67

A __________ solution stems from the assumption that private profit maximizes public good.
Answer trickle-down

Question 68

How do trickle-down solutions hurt the disadvantaged?

Question 69

What did Karl Marx mean when he discussed the inherent contradictions of capitalism? What has the passage of time shown us about those hypothetical contradictions?

Question 70

Income inequality is __________ in the United States.
Answer increasing

Question 71

Men __________ were less likely to be drafted during the height of the Vietnam War.
Answer in college

Question 72

The __________ are the people who occupy the most influential roles in society.
Answer power elite

Question 73

How does the systemic imperative benefit the power elite? Describe the ways in which the systemic imperative is biased toward the status quo.

Question 74

Identify the ways in which monopolies hurt free enterprise.

Question 75

Lack of centralized planning is a feature of ________.
Answer capitalism

Question 76

How have super PACs corrupted democracy?

Question 77

Four or fewer companies control at least 60 percent of the light bulb market in the United States, which demonstrates a __________.
Answer shared monopoly

Question 78

Describe how government subsidies are biased toward the rich and powerful.

Question 79

__________, as summarized throughout the text, is the ability to get what one wants from someone else.
Answer Power

Question 80

What is an interlocking directorate? Explain the difference between direct and indirect interlocks.
Ideal Answer The ideal answer should include the following: