Eitzen, In Conflict and Order: Understanding Society, 14th Edition, Test Bank
Chapter Eleven: The Economy
Multiple Choice Questions
TB_Q11.1.1
One condition of true capitalism is a government policy of _____ that allows the marketplace to operate without
intervention.
a. laissez-faire
b. benign neglect
c. the balance of powers
d. progressivism
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.1.2
Which of the following is NOT one of the three principles of capitalism?
a. Private ownership
b. Equal opportunity
c. Personal profit
d. Competition
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Easy
Skill Level: Understand the Concepts
TB_Q11.1.3
The late political observer Ivins said: “Capitalism … is a dandy system for creating wealth, but it doesn’t do squat
for _____. No reason to expect it to—that’s not its job.”
a. competition
b. private enterprise
c. social justice
d. personal empowerment
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.1.4
Chapter Eleven: The Economy
_____ refers to an economic system in which the means of production are owned by the people for their
collective benefit.
a. Capitalism
b. Totalitarianism
c. Libertarianism
d. Socialism
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.1.5
Which term refers to a system of government based on controlling the people of a country in a very strict way with
complete power that cannot be opposed?
a. Totalitarian
b. Capitalist
c. Democratic
d. Socialist
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.1.6
Which term refers to a belief in equality of opportunity for the self-fulfillment of all, equality rather than
hierarchy in decision making, and equality in sharing the benefits of society?
a. Laissez-faire
b. Socialism
c. Totalitarian
d. Egalitarianism
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.1.7
In Conflict and Order, 14th edition
The major discrepency between capitalism in its ideal form and capitalism as it is practiced in the United States is
a. huge corporations dominate the economy by controlling demand, rather than responding to the demands of the
market.
b. huge corporations dominate the economy by responding to market demands without government intervention.
c. laissez-faire government policies allow huge corporations to fail, putting white-collar employees out of work.
d. laissez-faire government policies have been replaced by tight government regulation of business in the wake of
the 2008 economic crash.
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Analyze It
TB_Q11.1.8
More than 130 years ago, Karl Marx hypothesized that free enterprise would result in some firms becoming
bigger and bigger as they eliminate their opposition or absorb smaller competing firms, resulting in the existence
of _____ in each of the various sectors of the economy.
a. companies
b. monopolies
c. regulation
d. market coverage
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Understand the Concepts
TB_Q11.1.9
Today, 1% of all corporations produce _____ of the private-sector output.
a. almost 10%
b. nearly 50%
c. more than 80%
d. 99%
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.1.10
Chapter Eleven: The Economy
A shared monopoly occurs when four or fewer firms supply 50% or more of a particular market, performing much as
a monopoly or cartel would. Another term for this is
a. oligochaete.
b. oligoclase.
c. oligarchy.
d. oligopoly.
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.1.11
Which of the following is one of the negative consequences of megamergers?
a. They increase the centralization of capital, reducing competition and raising prices for consumers.
b. They increase the power of unions for the workers who are employed by these companies.
c. They eliminate the corporate debt that finances the government and its programs.
d. They create overproduction in terms of new plants, products, and jobs.
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Analyze It.
TB_Q11.1.12
Bob is on the board of Megagiant Corp. and Karen is on the board of Supersize Inc. Both Bob and Karen serve
on the board of Mega-Superbank. This type of interlocking directorate is called a(n)
a. direct interlock.
b. indirect interlock.
c. conflict of interest.
d. shared monopoly.
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Apply What You Know
TB_Q11.1.13
Mr. Cabot serves on the boards of both the Big Bank of Money and the Super Soda Company. This type of
interlocking directorate is a(n)
a. direct interlock.
b. indirect interlock.
c. interlock conflict.
d. shared monopoly.
In Conflict and Order, 14th edition
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Apply What You Know
TB_Q11.1.14
Which of the following is the term for the linkage between corporations that results when an individual serves
on the board of directors of two companies or when two companies each have a director on the board of a third
company?
a. Conflict of interest
b. Oligopoly
c. Interlocking directorates
d. Monopoly
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.1.15
Because resources and wages are cheaper in many other nations, U.S. corporations are shifting more and more
of their total assets outside of the United States. As of 2009, _____ of the top 15 multinational companies were
U.S. based companies.
a. all
b. three
c. six
d. 12
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.1.16
The chapter states that inequality is endemic to capitalism. For example, of the 15,000 commercial U.S. banks, the
largest 50 hold _____ of all assets.
a. 77%
b. more than 50%
c. more than 33%
d. 10%
Learning Objective: LO 11.1: Understand how the U.S. economy compares to pure capitalism and pure socialism.
Topic/Concept: The Corporation-Dominated U.S. Economy
Difficulty Level: Moderate
Skill Level: Remember the Facts
Chapter Eleven: The Economy
TB_Q11.1.17
Capitalists argue that the profit motive, private ownership, and competition will achieve _____, although this is
not currently the case in the United States, where many workers live below the poverty line.
a. the greatest good for the greatest number
b. the greatest good for the most disadvantaged
c. a balance between the “haves” and “have nots”
d. social equality and opportunity for class advancement
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Understand the Concepts
TB_Q11.2.18
_____ provides individuals with their social identity, economic resources, and social location, it dominates their
time, and it is a primary source of life’s meaning.
a. Education
b. Work
c. Politics
d. Capitalism
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Easy
Skill Level: Understand the Concepts
TB_Q11.2.19
The chapter points out that work can have its dark side. The distribution of work and how it is rewarded are major
sources of _____ in society.
a. capitalism
b. advancement
c. inequality
d. leveling the playing field
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Understand the Concepts
TB_Q11.2.20
In Conflict and Order, 14th edition
With the advent of the _____, more and more families left agrarian life, moved to cities, and worked in
factories.
a. Socialist Revolution
b. Age of Englighment
c. Back-to-the-Land Movement
d. Industrial Revolution
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.2.21
Which term refers to repetitive work that is divided into very specialized tasks, using standardized tools and
procedures, in order to maximize speed and efficiency?
a. Scientific management
b. Industrial revolution
c. Factory system
d. Systemization
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.2.22
Scientific management was called by a term that based on the name of the concept’s founder, who is
a. Henry Ford.
b. Frederick Taylor.
c. Karl Marx.
d. Adam Smith.
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.2.23
One of the functions of a hierarchical system in the workplace is to encourage obedience to rules by
a. rewarding innovative ideas from all levels of worker.
b. increasing workers’ sense of pride in their accomplishments.
c. holding out the possibility of advancement as a reward.
d. ensuring that each worker is rewarded according to his or her contribution.
Chapter Eleven: The Economy
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Understand the Concepts
TB_Q11.2.24
According to Karl Marx, worker _____ occurs when workers do not have any control over their labor, are
manipulated by managers, work in large impersonal settings, and work at specialized tasks.
a. advancement
b. satisfaction
c. apathy
d. alienation
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Understand the Concepts
TB_Q11.2.25
Since the founding of the Occupational Safety and Health Administration (OSHA), workplace fatalities have
a. dropped by 62%.
b. risen by 43%.
c. risen by 34%.
d. dropped by 26%.
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.2.26
Minorities, especially _____, have the highest number of work-related deaths. Between 1992 and 2007, the rate of
worker deaths for this group increased by 76%.
a. African Americans
b. Latinos
c. Asian Americans
d. Native Americans
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.2.27
In Conflict and Order, 14th edition
Pregnant _____ have disproportionate numbers of miscarriages or babies with birth defects, apparently from
exposure to nonionizing radiation.
a. dyestuffs workers
b. coal miners
c. video display terminal operators
d. workers in semiconductor factories
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.2.28
Which term refers to a substandard work environment where workers are paid less than the minimum wage, workers
are not paid overtime premiums, and other labor laws are violated?
a. Sweat lodge
b. Workshop
c. Factory
d. Sweatshop
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Easy
Skill Level: Remember the Facts
TB_Q11.2.29
In 2013, a spotlight on sweatshops occurred due to the collapse of a garment factory in _____ that killed more than
1,100 young women and child laborers.
a. Bangladesh
b. Los Angeles
c. South Korea
d. Afghanistan
Learning Objective: LO 11.2: Describe how the characteristics of work in the United States can be a source of social problems.
Topic/Concept: The Problems of Work in the United States
Difficulty Level: Moderate
Skill Level: Remember the Facts
TB_Q11.2.30