Sociology Chapter 16: The Economy and Work Flashcard Example #85422

economy
the social institution that organizes a society’s production, distribution, and consumption of goods and services
social institution
the major spheres of social life, or societal subsystems organized to meet human needs
postindustrial economy
a productive system based on service work and high technology
primary sector
the part of the economy that draws raw materials from the natural environment
*is of greatest importance in low-income nations (26% of economy)
i.e. agriculture, fishing, mining
secondary sector
the part of the economy that transforms raw materials into manufactured goods
*significant share of economy in low-, middle-, high-income nations (25%-35% of economy)
i.e. automobile and clothing manufacturing
tertiary sector
the part of the economy that involves services rather than goods
*is the largest sector in low-, middle-, high-income nations (49%-73%)
i.e. secretarial work, sales, teaching
global economy
economic activity that crosses national borders
agricultural revolution
(5000 yrs ago) made the economy a distinct social institution based on:
-agricultural technology
-specialized work
-permanent settlements
-trade
industrial revolution
(began around 1750); expanded the economy based on:
-new sources of energy
-centralization of work in factories
-specialization and mass production
-wage labor
the postindustrial economy propelled by the ___________ __________ is based on:
information revolution;
(began around 1950)
-shift from industrial work to service work
-computer technology
the information revolution made 3 significant changes:
1. changed from tangible products to ideas
2. moved from mechanical skills to literacy skills
3. from factories to almost anywhere
Capitalism
an economic system in which natural resources and the means of producing goods and services are privately owned
Capitalism results in:
-greater productivity
-higher overall standard of living
-greater income inequality
-freedom to act according to self-interest
i.e. U.S. mostly capitalist economy
Socialism
an economic system in which natural resources and the means of producing goods and services are collectively owned
Socialism results in:
-less productivity
-lower overall standard of living
-less income inequality
-freedom from basic want

i.e. China ; Venezuela

communism
a hypothetical economic and political system in which all members of a society are socially equal
Welfare capitalism
an economic and political system that combines a mostly market based economy with extensive social welfare programs
under welfare capitalism:
-government may own some large industries such as transportation and the mass media
-most industry is privately owned but highly regulated by the government
-high taxation of the rich helps pay for extensive gov services for all
i.e. Sweden/ Italy
State Capitalism
an economic and political system in which companies are privately owned but cooperate closely with the government
under State Capitalism:
government works in partnership with large companies by:
*supplying financial assistance
*controlling foreign imports

i.e. Japan/Singapore

primary labor market
jobs that provide extensive benefits to workers
*these jobs involve interesting work, high income, benefits, and job security
secondary labor market
jobs that provide minimal benefits to workers
*these jobs have lower pay, less job security, fewer benefits, and provide less personal satisfaction.
labor unions
organizations of workers that seek to improve wages and working conditions through various strategies, including negotiations and strikes
profession
prestigious white-collar occupation that requires extensive formal education
underground economy
economic activity involving income not reported to the government as required by law
jobs in the postindustrial U.S. economy
Agricultural work-1.7% of jobs
Blue Collar work-13% of jobs
White-collar work-85% of jobs
Self-employment
6.8% workers in U.S. self employed
*many professionals fall into this category, but most have blue_collar jobs
Unemployment
*many causes, including the operation of the economy
*8.9% country unemployed (2011)
*highest risk: young people and African Americans
Information technology affect on work
Changing the workplace and how people work
computers are:
-deskilling labor
-making work more abstract
-limiting interaction among workers
-increasing employers control over workers
-allowing companies to re-locate work
Corporations
an organization with a legal existence including rights, liabilities, separate from that of its members
corporations form:
*the core of the U.S. economy
Incorporation
*makes an organization a legal entity
*shields owners wealth from lawsuits brought against the company
*can result in a lower tax rate on the company’s profits
conglomerate
a giant corporation composed of many smaller corporations
Conglomerates account for:
*most corporate assets and profits (i.e PepsiCo., General Motors)
*corporations are linked through interlocking directorates
*recognizing that corporate linkages and the domination of certain markets by large corporations reduce competition, federal laws forbid monopoly and price fixing
monopoly
the domination of a market by a single producer
oligopoly
the domination of a market by a few producers
Many large corporations operate as:
multinationals-producing and distributing products in nations around the world
Modernization theorists claim that multinationals:
raise living standards in poor countries by offering them more jobs and advanced technology
Dependency theorists claim that multinationals:;
make global inequality worse by pushing poor countries to produce goods for export and making them more dependent on rich nations
The economy organizes the production, distribution, and consumption of goods and services. T or F
true
The economy did not emerge as a distinct social institution until the Industrial Revolution.
false
One key to industrialization was creating new sources of energy.
true
Compared to agricultural work, industrial jobs involve less specialization.
false
The invention of the corporation is generally taken as the point at which a postindustrial society emerged.
false
The Information Revolution requires workers to gain literacy skills instead of the mechanical skills that were important during the Industrial Revolution.
true
Agricultural production is part of the primary sector of the economy.
true
The concepts “primary sector,” “secondary sector,” and “tertiary sector” refer to how productive a sector is in terms of economic value
false
The global economy pays little regard to national borders.
true
Adam Smith’s idea was that, in a capitalist system, government tells businesses what to produce and consumers what to buy.
false
Although there are many privately-owned companies in the United States, most of the U.S. economy is owned and operated by the government.
false
Taken together, local, state, and federal governments are the U.S.’s largest single employer.
true
Socialism is also called a “laissez-faire” economic system.
false
Socialism has spread around the world to the point that, today, a majority of the world’s nations have a socialist economic system.
false
Combining a market-based economy with an extensive social welfare program yields what is called “welfare capitalism.”
true
Capitalism is more productive than socialism, and capitalism also creates greater economic inequality.
true
The concept “state capitalism” refers all productive enterprises in a country being owned by the government.
false
Socialist economies create greater economic equality than capitalist economies, but with a lower overall living standard.
true
Less than 2 percent of today’s U.S. labor force works in agriculture.
true
Most people with jobs in the primary labor market would probably rather have jobs in the secondary labor market.
false
In the United States, union membership is higher today than ever before
false
Denmark is an example of a European nation with a system of welfare capitalism in which high taxes pay for extensive government-provided benefits.
true
The concept “paraprofessional” refers to work that requires skills, but typically lacks a broad theoretical knowledge of a field.
true
Most self-employed persons are professionals.
false
The self-employed are more likely to have blue-collar jobs than white-collar jobs.
true
A recent trend in the United States is a steady rise in the share of small businesses owned by women.
true
In recent years, the lowest unemployment rates in the United States have been among teenagers.
false
Prostitution and selling illegal drugs are typically part of the underground economy.
true
The U.S. workforce is becoming more “white,” even as immigration rates rise.
false
One effect of computer technology is giving workers greater power over their employers.
false
The use of computers by workers tends to limit workplace interaction.
true
A corporation is an organization with a legal existence apart from that of its members.
true
Conglomerates are giant corporations composed of many smaller corporations.
true
Oligopoly refers to any company that operates in more than one country.
false
Monopoly refers to a corporation that operates within a single sector of the economy.
false
Large corporations dominate many markets in the global economy.
true
As a social institution, the economy
a. produces and distributes goods and services.
b. guides the consumption of goods and services.
c. operates in a relatively predictable manner.
d. All of these are correct.
d
Which social institution do most sociologists claim has the greatest effect on society as a whole?
a. the family
b. the economy
c. the political system
d. religion
b
Over the course of human history, revolutionary changes in which of the following have brought great changes to the economy?
a. production technology
b. the family
c. population size
d. natural resources
a
The text describes three technological revolutions that transformed all of social life. Which of the following is NOT one of them?
a. the Agricultural Revolution
b. the Industrial Revolution
c. the Immigration Revolution
d. the Information Revolution
c
The development of agriculture was set in motion by
a. changes in the church.
b. using animals to pull the plow.
c. the discovery of writing.
d. the discovery of oil.
b
The economy first became a distinct social institution during which historical stage of technological development?
a. hunting and gathering societies
b. agrarian societies
c. industrial societies
d. postindustrial societies
b
As societies industrialize, a smaller share of the population works in which of the following locations?
a. farms
b. factories
c. assembly lines
d. All of these are correct.
a
The Industrial Revolution was based on
a. the spread of cottage industry.
b. people beginning to work in their homes.
c. a decrease in productive specialization.
d. new sources of energy.
d
Which of the following new sources of energy launched the Industrial Revolution?
a. the gasoline engine
b. the steam engine
c. wind power
d. electricity
b
Early factories in New England, where the Industrial Revolution first developed in the United States
a. employed women for half the wages paid to men.
b. manufactured textiles.
c. discouraged any worker organizations.
d. All of these are correct.
d
The postindustrial economy is defined by
a. the spread of factories.
b. mass production of goods and services.
c. manufacturing of raw materials.
d. service work and computer technology.
d
Which of the following concepts refers to an economy based on computer technology?
a. postindustrial economy
b. industrial economy
c. technological economy
d. agrarian economy
a
Which of the following statements about the Information Revolution is NOT correct?
a. There was a shift from making tangible products to generating ideas.
b. There was a shift from mechanical skills to literacy skills.
c. There was a shift from farming to turning raw materials into finished products.
d. There was a shift from working in factories to working almost anywhere.
c
What sector of the economy generates raw materials directly from the natural environment?
a. primary sector
b. secondary sector
c. tertiary sector
d. None of these are correct.
a
Turning metals into automobiles is work that falls within the
a. primary sector.
b. secondary sector.
c. tertiary sector.
d. All of these are correct.
b
Looking at economies around the world, the primary sector is the largest in
a. high-income nations.
b. middle-income nations.
c. low-income nations.
d. It is the same size in all nations.
c
The expansion of office work marks the growth of the economy’s
a. primary sector.
b. secondary sector.
c. tertiary sector.
d. None of these are correct.
c
In the United States, about what percentage of the labor force performs tertiary sector work?
a. 15 percent
b. 35 percent
c. 55 percent
d. 85 percent
d
The concept of “global economy” refers to
a. economic activity that moves across national borders.
b. the fact that only a few countries now contribute to the global economy.
c. the fact that economic output is under the control of global political leadership.
d. All of these are correct.
a
Globalization of the economy means that
a. world regions specialize in one sector of economic activity.
b. more and more products pass through several nations.
c. a small number of businesses represent a huge share of global economic output.
d. All of these are correct.
d
Capitalism is an economic system in which there is
a. government control of production.
b. private ownership of property.
c. pursuit of collective goals.
d. All of these are correct.
b
In a capitalist economic system, “justice” amounts to
a. doing what is best for society’s poorest members.
b. everyone being more or less economically equal.
c. freedom of the marketplace allowing people to follow their self-interest.
d. All of these are correct.
c
The social thinker whose ideas supported the operation of a free-market economy most was
a. Thorstein Veblen.
b. Adam Smith.
c. Karl Marx.
d. Max Weber.
b
The United States is a mostly capitalist nation because
a. the vast majority of productive businesses are privately owned.
b. we have a system of free elections.
c. of our high living standards.
d. of the extensive government control of the economy.
a
Socialism is an economic system in which there is
a. collective control of production.
b. private ownership of property.
c. pursuit of individual profit.
d. All of these are correct.
a
Which of the following DOES NOT describe the operation of a socialist economy?
a. collective orientation
b. government control of production
c. laissez-faire economy
d. command economy
c
In a socialist economic system, “justice” amounts to
a. trying to meet the basic needs of all in a equal manner.
b. doing whatever helps boost company earnings.
c. freedom of the marketplace.
d. All of these are correct.
a
What is the hypothetical economic and political system in which all people in society are socially equal?
a. capitalism
b. socialism
c. welfare capitalism
d. communism
d
Which of the following concepts refers to a political and economic system that combines a mostly market-based economy with extensive social welfare programs?
a. capitalism
b. socialism
c. welfare capitalism
d. communism
c
An example of a European country with a mostly private economy and extensive social welfare programs is
a. Germany.
b. Sweden.
c. Spain.
d. All of these are correct.
b
The concept “state capitalism” refers to a system in which
a. the government owns and operates most economic enterprises.
b. privately-owned companies cooperate closely with the government.
c. the government owns but does not operate most economic enterprises.
d. large businesses control the government.
b
Which of the following countries best exemplifies a system of state capitalism?
a. the United States
b. Great Britain
c. Australia
d. Japan
d
Contrasted to socialist economic systems, capitalist economic systems are typically
a. equally productive.
b. more productive.
c. less productive.
d. not concerned with productivity.
b
Contrasted to socialist economic systems, capitalist economic systems typically
a. generate more economic inequality.
b. generate less economic inequality.
c. generate about the same level of inequality.
d. do not generate any social equality.
a
Concerning the issue of personal freedom, capitalist systems emphasize people’s _____, while socialist systems emphasize people’s _____.
a. collective needs; personal needs
b. freedom from basic want; freedom to pursue their self-interest
c. freedom to pursue their self-interest; freedom from basic want
d. social needs; material needs
c
In the United States about what share of the population aged sixteen and older is in the paid labor force?
a. 18 percent
b. 38 percent
c. 58 percent
d. 78 percent
c
Over the course of the last century, the number of people involved in agricultural work
a. has remained about the same.
b. has declined steadily.
c. has increased dramatically.
d. has stayed the same, although a larger share of workers are immigrants.
b
By the early 1960s, most of the people in the U.S. labor force had which type of job?
a. white-collar
b. blue-collar
c. pink-collar
d. farming
a
Yesterday’s family farms have given way to
a. importing most foods from abroad.
b. collectively-run farming communes.
c. corporate agribusinesses.
d. smaller, individually-run farms.
c
The concept “primary labor market” refers to
a. jobs that provide extensive benefits to workers.
b. jobs typically taken by teenagers.
c. jobs that require no particular training or experience.
d. jobs that offer little pay and low security.
a
In recent decades, union membership
a. has risen in the United States and other high-income nations.
b. has risen in the United States, but not in other high-income nations.
c. has declined in the United States, but not in other high-income nations.
d. has declined in the United States and other high-income nations.
d
Read the four descriptions below. Which of them DOES NOT apply to a profession?
a. having theoretical knowledge of a field
b. working for a large, well-established company
c. having authority over clients
d. professing a community, rather than an individual, orientation
b
What percentage of today’s U.S. workers are self-employed?
a. 6.8 percent
b. 26.8 percent
c. 46.8 percent
d. 66.8 percent
a
Which of the following would be included in the operation of the underground economy?
a. a teacher who is on disability leave for a long time
b. an executive who illegally “borrows” funds from the company
c. a taxi driver who fails to report most of her income
d. food servers who are paid less than the minimum wage
c
Which category of the U.S. population is showing the greatest labor-force increase in terms of percentage?
a. white men
b. Hispanic women
c. white women
d. African American women
b
Computers are having which of the following effects on the workplace?
a. Computers are deskilling labor.
b. Computers are limiting workplace interaction.
c. Computers enhance employers’ control of workers.
d. All of these are correct.
d
A conglomerate is
a. a giant corporation composed of many smaller corporations.
b. a corporation in the manufacturing sector.
c. a corporation engaged in both legal and illegal activity.
d. any company that completely dominates a market.
a
The concept “oligopoly” refers to
a. any corporation with more than $1 billion in sales.
b. the largest company in a particular field.
c. domination of a market by a few producers.
d. a large company operating in all three economic sectors.
c
Modernization theorists see large corporations as
a. offering little to help poor nations seeking to develop.
b. unleashing the productive power of capitalism to speed development in poor nations.
c. responsible for the debt crisis in many poor nations.
d. needing the technology currently available in poor nations.
b
Dependency theorists see large corporations as
a. the key to meeting the needs of people in poor nations.
b. helping poor nations to develop local industries.
c. a major source of foreign investment for poor nations.
d. intensifying global inequality.
d

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