Question 1

More than one in ______ children now live in poverty.

Accepted Answer

More than one in five children now live in poverty, according to global statistics on child poverty rates.

Question 2

__________ refers to the process whereby companies relocate to third world countries.

Accepted Answer

Capital flight refers to the process of companies relocating to third world countries in order to maximize their profits by taking advantage of cheaper labor and lower taxes. This is typically done to cut costs and increase profitability. Globalization refers to the process of increased trade and interdependence between nations. Technological investment refers to companies investing in new technology to improve their operations. Communication refers to the transfer of information between people or organizations.

Question 3

Today, African-Americans who are poor are far more likely than in earlier years to live in areas where just about everyone else is poor.

Accepted Answer

This is supported by research and data showing an increase in residential segregation by income and race in recent decades.

Question 4

The proportion of Americans living in poverty has decreased.

Accepted Answer

The proportion of Americans living in poverty has fluctuated over time due to various economic factors, and recent data indicates an increase in poverty rates, particularly due to the economic impacts of the COVID-19 pandemic.

Question 5

Within a capitalist economic system the existence of a surplus population is inevitable.

Accepted Answer

Within a capitalist economic system, there will always be a surplus population because the economy is based on profits and competition. Companies may not need as many workers as there are people available to work, leading to unemployment and underemployment. This is due to the fact that competition drives businesses to maximize efficiency and minimize costs, including labor costs. The surplus population is a result of this system and can only be partially addressed through government interventions such as job creation and social safety nets.

Question 6

The best-selling book by Barbara Ehrenreich, with the appropriate title Nickel and Dimed: On (Not) Getting by in America, reflects her experience of spending the better part of a year actually working in six different low-wage jobs trying to make ends meet during this time. What did she find was the most pressing concern of the working poor?

Accepted Answer

Barbara Ehrenreich found that finding affordable housing and healthcare was the most pressing concern of the working poor based on her experience working in low-wage jobs for a year. She encountered difficulties in finding and affording housing, as well as accessing healthcare when needed.

Question 7

During the past four decades the percentage of women in the labor force has _________.

Accepted Answer

The percentage of women in the labor force has significantly increased over the past four decades, nearly doubling in many regions. This reflects societal changes, including greater gender equality and economic necessity.

Question 8

Today the United States could be described as a "high-wage society."

Accepted Answer

The United States has a wide range of wages, with significant income inequality and many workers earning low wages by international standards, especially when considering the cost of living.

Question 9

Recent changes in the U.S. economy have caused thousands of workers to lose their jobs. Which is not one of these changes?

Accepted Answer

The other choices are all changes that have contributed to job loss, but the "overall shift of the surplus population" is not a well-defined concept and does not describe a specific change in the U.S. economy.

Question 10

As of 1990, an estimated 18 percent of full-time workers were classified as living under the official __________.

Accepted Answer

The official poverty line is a measure of income level below which a family is officially considered to be living in poverty. Therefore, option A is the best choice as it directly refers to the percentage of full-time workers who are living under this official poverty line. Option B is incorrect as it refers to welfare minimums instead of the poverty line, and Option C is partially correct but does not give a direct answer to the percentage of full-time workers living in poverty.

Question 11

The last stage of the Industrial Revolution includes ___________.

Accepted Answer

The last stage of the Industrial Revolution includes globalization, technological advancement, and movement of capital. This stage, also known as the "third wave," saw the widespread adoption of digital technology and the increasing interconnectivity and interdependence of global economies. Advances in transportation, communication, and manufacturing technologies facilitated the movement of goods, services, and capital across borders, creating a truly global economy. All of these factors contributed to the continued growth and evolution of industry and commerce on a global scale.

Question 12

_________ is a process whereby companies have invested overseas, relocated plants within the United States, or engaged in mergers with other corporations.

Accepted Answer

Capital flight refers to the process where companies invest overseas, relocate plants, or engage in mergers, often to seek more favorable economic conditions.

Question 13

Surprisingly, the likelihood of dropping out of high school is higher for students from higher-income families than for students from lower-income families.

Accepted Answer

This statement is false. Students from lower-income families are more likely to drop out of high school than students from higher-income families.

Question 14

Feminization of poverty affects which racial class the most?

Accepted Answer

Research has shown that African-American women are disproportionately affected by the feminization of poverty. They face both gender and racial discrimination, which results in higher poverty rates, lower wages, and limited access to resources and opportunities.

Question 15

As of early 2003, unemployment has been on the rise.

Accepted Answer

This statement is factual for early 2003, as unemployment rates had been increasing at that time.

Question 16

Profits that are the result of tax loopholes, subsidies, and taxpayer assistance are known as _______.

Accepted Answer

Profits that are the result of tax loopholes, subsidies, and taxpayer assistance are commonly referred to as corporate welfare. This term refers to the government benefits that are extended to businesses or industries, often to try to stimulate economic growth or support certain sectors of the economy.

Question 17

The average wage of the typical male worker has ___________ since the 1970's. This is partly the result of shift to temporary workers in the new economy.

Accepted Answer

The average wage of the typical male worker has remained about the same since the 1970s, largely due to economic changes such as the rise of temporary and gig work, which often offer lower wages and fewer benefits.

Question 18

In recent years workers are producing more for the owners than in the 1970's but earning proportionately less.

Accepted Answer

This phenomenon, known as wage stagnation, has been documented by numerous studies and reports. The productivity of workers has increased significantly since the 1970s, but wages have not kept pace with this growth. This has resulted in a widening income gap between workers and owners, as well as increased economic inequality in many countries.

Question 19

Big business cannot exist without strong support from the government.

Accepted Answer

Big businesses often rely on government subsidies, tax breaks, and regulations that benefit them. Without this support, they may struggle to maintain their profits and dominance in the market. Additionally, lobbying and political influence can help big businesses sway government policies and decisions in their favor.

Question 20

One of the key concepts originally developed by Karl Marx referred to a more or less chronically unemployed or underemployed segment of the population, primarily because of mechanization which renders them "redundant" and hence "superfluous" as far as producing profits is concerned. This segment helps keep wages down and is absorbed back into the general working population when labor is scarce. What is this segment?

Accepted Answer

The segment of the population being referred to is the surplus population or reserve army, as identified by Karl Marx. They are "redundant" and "superfluous" as far as producing profits is concerned because they are chronically unemployed or underemployed due to mechanization. This segment helps keep wages down and is only absorbed back into the general working population when labor is scarce.

Quiz 8: Where Do We Go From Here