Deck 11: Economy and Society

Question 1

One of the effects of the North American Free Trade Agreement (NAFTA) was:

A) It lowered wages in Mexico, which along with the drop in the value of the peso, reduced the number of American products sold to Mexicans.
B) It cost American jobs whereby American companies moved to Mexico where they could hire cheaper labor.
C) It concentrated pollution and increased negative health effects in communities surrounding industrial plants that moved to Mexico.
D) All of the above.

Answer 1

D

Question 2

When societies move from one place to another in a particular geographic area in pursuit of meeting their needs, they are said to be ________.

A) Sectarian
B) Nomadic
C) Tertiary
D) A mixed economy

Answer 2

B

Question 3

Industrial economies

A) Incorporate the use of machines to produce goods.
B) Emphasize service as the main part of the economy.
C) Tend to rely heavily on agriculture.
D) Tend to have high levels of consensus in society.

Answer 3

A

Question 4

True agriculture

A) has existed for up to 10,000 years.
B) involves growing crops in soil until it becomes infertile, and then moving to new fertile ground.
C) Often involves the production of surplus goods.
D) Both A and

Question 5

Deindustrialization took place in the US when

A) Core economic growth shifted from manufacturing to services.
B) Technologies automated industry.
C) Newly arrived immigrants assumed control of a great number of jobs.
D) Both A and

Question 6

As a result of ____________ U.S. manufacturers in the past several decades moved jobs to other countries where they can pay lower wages.

A) The industrial economy
B) Production surplus
C) Automation
D) Globalization

Question 7

Economists such as Adam Smith assumed that

A) People have individual needs that motivate them and influence their actions.
B) People have strong religious ties that impact their choices.
C) Humans are naturally greedy or self-interested
D) Reciprocity is important to all people.

Question 8

__________ occurs when investors invest capital for purely profit reasons, and not to produce a good or service with their investment.

A) Equity funding
B) Monetary investing
C) Speculation
D) Rational maximization

Question 9

The mania phase of Kindleberger's Simplified Model of Financial Crises occurs when:

A) financial crises begin to spread to world markets.
B) an irrational rise in prices follow new opportunities for profit ventures.
C) investors fear values may be increasing too much.
D) None of the above.

Question 10

The simplest level of economic development are

A) Hunting and gathering societies
B) Bureaucracies
C) Capitalist economies
D) Postindustrial economies

Question 11

According to Karl Marx a particular element within capitalism plays an important function that constantly reminds workers that they can be easily replaced if they demand too much in terms of wages and benefits. What is this element Marx was referring to?

A) Economic recessions
B) Free-market competition
C) A reserve army of the unemployed
D) Bond markets

Question 12

Karl Polanyi directly challenged the idea that

A) the market was an actual entity.
B) people controlled market decisions.
C) the economy and society were two separate spheres.
D) self-interest did not influence the economy.

Question 13

Hunting and gathering societies tend to have low levels of consensus.

Question 14

Hunting and gathering societies tend to have communal ownership.

Question 15

People who live in hunting and gathering societies tend to work more to meet their needs than do people in complex economic systems.

Question 16

Karl Polanyi argued that regulations by people and not "self-regulation" allowed markets to properly function.

Question 17

The classic sociological tradition that included the work of Weber, Durkheim and Marx focused on the intersection between society and economy.

Question 18

Banks are a key component of the tertiary sector of the economy.

Question 19

During the twentieth century, the share of American corporate income going to profits as opposed to wages, was higher after recessions than before.

Question 20

There are few countries where workers are as well or better trained than American workers, and where production equipment is more modern.

Question 21

Modernization theory argues that core countries exploit peripheral countries for their own benefit.

Question 22

The power of global market forces take more and more decisions away from democratically elected representatives.

Question 23

Rational Choice Theory argues that people are fundamentally mistaken in their belief that the market will control itself.

Question 24

Max Weber saw that people in modern society would be seduced into an increasingly materialistic and narcissistic existence.

Question 25

Karl Polanyi argued that the economy is unable to self-regulate.

Question 26

Name and describe three basic economic sectors in the United States.

Question 27

Describe the features of a hunting-and-gathering society. How are decisions made in such an economy?

Question 28

Describe the key features of an agricultural economy. How does such an economy become stratified? What is stratification according to your authors?

Question 29

How are capitalism and socialism different? Begin by defining both then compare and contrast.

Question 30

What is a "mixed economy"? Does the United States fit into this model? If so, how? If not, explain why not.

Question 31

Explain the difference between primary financial markets and secondary financial markets. Begin by defining both terms.

Question 32

Identify how functionalists and conflict theorists view the economic cycle and unemployment.

Question 33

Define "mixed economies" and give two examples of a mixed economy.

Question 34

Define and compare socialism and capitalism. In which category is the United States, or does it take some other form?

Question 35

Describe the key features of an industrial economy. What was the Industrial Revolution and how did it affect society? What were the effects of the Industrial Revolution on 1) households, 2) cities, 3) families, and 4) workers?

Question 36

Describe the key features of a postindustrial economy. What are the effects on employment and economic conditions in a post-industrial society? Is our current economy post-industrial or something else?

Question 37

What is the difference between an oligopoly, a monopoly, and a conglomerate? Begin by precisely defining all three terms.

Question 38

What is a multinational corporation? How are they connected to globalization? What social, political, and economic effects might a multinational corporation have in countries that are classified as "Third World" or the "Global South"?

Question 39

What are some of the social and economic costs of globalization in the United States and around the world?

Question 40

Describe how the production of surplus food changed societies. What were the effects on the economic and political structures and on people overall from having a newly realized food surplus?

Question 41

Describe key arguments related to the economy by Karl Marx. What would eventually occur at advanced stages of capitalism according to Marx?

Question 42

Describe the features of postindustrial economies. How does a postindustrial economy affect workers and their work, along with job availability, and types of jobs?

Question 43

Discuss key differences between how Adam Smith and Karl Polanyi viewed markets and economies.