((Henslin 12e Test Bank)) ((11—20))
a. pastoral and horticultural societies.
b. industrial societies.
c. hunting and gathering societies.
d. subsistence economies.
TB_Q14.1.4
The _____ ushered in agricultural societies.
a. use of child labor
b. plow
c. subsistence economy
d. steam engine
TB_Q14.1.5
In what century was the steam engine invented?
a. Seventeenth
b. Eighteenth
c. Nineteenth
d. Twentieth
TB_Q14.1.6
((Henslin 12e Test Bank)) ((11—21))
The marriage of biology and economics in the _____ society is likely to yield
greater surpluses than before and more extensive trade.
a. industrial
b. biotech
c. hunter-gatherer
d. new agricultural
TB_Q14.1.7
A society’s view of children as having the right to be educated and to be spared
from adult burdens accompanies
a. economic prosperity.
b. child-labor laws.
c. poverty.
d. democracy.
TB_Q14.2.8
A _____ is the means by which people place a value on goods and services in
order to make an exchange; for example, currency, gold, and silver.
a. barter
b. deposit receipt
c. medium of exchange
d. currency
TB_Q14.2.9
To _____ is to directly exchange one item for another.
a. barter
b. purchase
c. use fiat money
d. use electronic gold
TB_Q14.2.10
_____ is any item, whether sea shells or gold, that serves as a medium of
exchange.
a. Money
b. The gold standard
c. Barter
d. Stored value
TB_Q14.2.11
A _____ is used as a form of money. It states that a certain amount of goods are
on deposit in a warehouse or bank.
a. gold standard
b. deposit receipt
c. currency
d. credit card
TB_Q14.2.12
Currency is
a. gold.
b. fiat money.
c. e-cash.
d. paper money.
TB_Q14.2.13
A deposit receipt or a currency has a(n) _____, which is defined as the goods
stored and held in reserve that back up a receipt or currency.
a. barter value
b. gross domestic product (GDP)
c. stored value
d. inflation reserve
TB_Q14.2.14
Which of the following statements about the gold standard is true?
a. All economies follow it.
b. It permits countries to print as much paper money as they want.
c. The United States follows it.
d. In 1971, the United States dropped the gold standard.
TB_Q14.2.15
Fiat money is
a. backed by stored value.
b. a type of inflation.
c. not backed by stored value.
d. a form of barter.
TB_Q14.2.16
The amount of goods and services that a nation produces is known as the
a. gross domestic product.
b. deposit receipt.
c. total output.
d. medium of exchange.
TB_Q14.2.17
Sarah stopped at the supermarket to quickly pick up some milk, bread, cat litter,
and a tomato. When she saw the total come up on the screen, she swore that it was
a dollar higher than it should be. But no, the prices were all correct on her receipt.
It was just that they had all gone up. So had the cost of clothing, cars, and most
everything else. This is called
a. the gold standard.
b. inflation.
c. increased purchasing power of the dollar.
d. stored value.
((Henslin 12e Test Bank)) ((11—25))
TB_Q14.2.18
Carlos often did not have much money with him, but he shopped anyway, using a
_____, which is a device that allows its owner to buy goods and be billed for them
later.
a. debit card
b. credit card
c. deposit receipt
d. currency
TB_Q14.2.19
The cost of an item purchased is electronically withdrawn from the purchaser’s
bank account using a
a. credit card.
b. deposit receipt.
c. fiat currency.
d. debit card.
TB_Q14.2.20
Governments ____ the development of e-cash.
a. provide grants for
((Henslin 12e Test Bank)) ((11—26))
b. encourage
c. dislike
d. are unaware of
TB_Q14.2.21
A transaction in e-gold is actually the transfer of ownership of a specified amount
of _____ stored in a bank vault.
a. silver
b. gold
c. paper money
d. euros
TB_Q14.3.22
In _____, the means of production are privately owned.
a. socialism
b. convergence theory
c. laissez-faire socialism
d. capitalism
TB_Q14.3.23
In laissez-faire capitalism,
((Henslin 12e Test Bank)) ((11—27))
a. the government controls the market.
b. central committees control the market.
c. the government does not interfere in the market.
d. the public controls the market.
TB_Q14.3.24
The United States follows _____, where private citizens own the means of
production and pursue profits, but within a system of laws to protect the welfare
of the population.
a. state socialism
b. state capitalism
c. laissez-faire capitalism
d. pure capitalism
TB_Q14.3.25
When an entire industry is controlled by a single company, this is called
a. state capitalism.
b. laissez-faire capitalism.
c. a monopoly.
d. pure capitalism.
TB_Q14.3.26
One important feature of socialism is
a. encouragement of competition.
b. profit-making.
c. the elimination of competition.
d. distribution of goods according to people’s ability to pay.
TB_Q14.3.27
Capitalism responds to
a. market forces.
b. edicts from central planning committees.
c. the public, which owns the means of production.
d. pure socialism.
TB_Q14.3.28
Democratic socialism is
a. an economic system where only individuals own businesses.
b. a hybrid economic system.
c. pure capitalism.
d. an economic system where only the government owns businesses.
TB_Q14.3.29
The main criticism leveled against capitalism is that it
a. focuses too much on the public good.
b. leads to social equality.
c. does not respect individual rights.
d. leads to social inequality.
TB_Q14.3.30
_____ take(s) the view that capitalist and socialist economic systems, in adopting
features of one another, will create a mixed economic system.
a. State capitalism
b. Convergence theory
c. Market forces
d. Divergence theory
TB_Q14.3.31
The United States has adopted
a. many socialist practices.
b. convergence theory, which is being promoted through television ads.
c. market-force-blind capitalism.
d. no socialist practices.
TB_Q14.4.32
_____ solidarity is the unity that people feel as a result of performing the same or
similar tasks.
a. Durkheimian
b. Mechanical
c. Organic
d. Forced
TB_Q14.4.33
In Durkheim’s _____ solidarity, we all depend on others to fulfill their jobs.
a. management
b. organic
c. corporate
d. stockholder
TB_Q14.4.34
A corporation is
a. unable to be sued.
b. very distinct legally from a person.
c. global division of labor.
d. legally treated as a person.
TB_Q14.4.35
Corporations dominate an economy in
a. a stockholder revolt.
b. mechanical solidarity.
c. corporate capitalism.
d. corporate neosocialism.
TB_Q14.4.36
A stockholder’s revolt is actually a case of the _____ rebelling at the control of
the _____.
a. owners; workers
b. owners; stockholders
c. workers; stockholders
d. workers; owners
TB_Q14.4.37
_____ believe(s) that the new global division of three main trading blocks benefits
the multinational giants as well as the citizens of the world.
a. Conflict theorists
b. Functionalists
c. Durkheim
d. Small town residents
TB_Q14.5.38
_____ presidents of the United States have helped arrange sales of planes and
bombs to other countries.
a. No
b. Only Republican
c. Republican and Democratic
d. All
TB_Q14.5.39
At least two corporations–International Telephone & Telegraph Company (ITT)
and Royal Dutch Shell–have been involved in
a. trying to discourage capitalism.
b. assassinations.
c. trying to artificially keep the wages of workers high.
d. schemes to distribute the bulk of their earnings to the global poor.
TB_Q14.5.40
With _____, top companies form a network that can be likened to a spider’s web.
a. multinational corporations
b. interlocking directorates
c. socialist governments
d. an excess of allegiance to workers and the United States
TB_Q14.5.41
Stephen Schwarzman, one of the members of the global superclass, stated that
_____ people make the world’s major decisions.
a. 5 to 10
b. 20 to 50
c. 100 to 250
d. 2000 to 5000
TB_Q14.5.42
As _____ do business across national borders, they become detached from the
interests and values of their country of origin.
a. small businesses
b. all corporations
c. multinational corporations
d. a small minority of corporations
TB_Q14.5.43
The three largest multinational corporations are headquartered in
a. the United States.
b. the United Kingdom.
c. Japan.
d. China.
((Henslin 12e Test Bank)) ((11—34))
TB_Q14.6.44
The number of women working for wages
a. decreases with their level of education.
b. increases with their level of education.
c. is moderately decreasing today.
d. has plummeted in recent years.
TB_Q14.6.45
Of 27 countries around the world, the percentage of women employed in the
United States ranks
a. first.
b. fourth.
c. sixteenth.
d. twenty-seventh.
TB_Q14.6.46
Researchers have found that when it comes to working, women are more likely to
_____, while men are more likely to _____.
a. prefer to work alone; prefer to work in teams
b. prefer to work longer hours; prefer to work shorter hours
((Henslin 12e Test Bank)) ((11—35))
c. prefer to work in teams; prefer to work alone
d. emphasize power; emphasize encouragement
TB_Q14.6.47
The exchange of goods and services in the underground economy
a. is reported to the government.
b. escapes taxes.
c. is always illegal.
d. is heavily taxed.
TB_Q14.6.48
In a way, _____ is reversing the Industrial Revolution’s shift from working at
home to working in an office.
a. the underground economy
b. telecommuting
c. the quiet economy
d. the connection to seasonal rhythms
TB_Q14.7.49
The poorest fifth of the U.S. population receives _____ of the nation’s income.
a. 1%
((Henslin 12e Test Bank)) ((11—36))
b. 3%
c. 10%
d. 33%
TB_Q14.7.50
The gap between rich and poor Americans is
a. greater than it has been in generations.
b. narrowing.
c. almost a thing of the past.
d. about the same as it has always been.
Essay Questions
TB_Q14.1.51: Back in 1973, which six characteristics did Daniel Bell ascribe to
the postindustrial society?
TB_Q14.2.52: Arrange these types of mediums of exchange in chronological
order, from oldest to newest: fiat currency, coins, barter, debit cards, currency,
deposit receipts, e-cash.
TB_Q14.3.53: Compare capitalism and socialism in terms of ownership of the
means of production, competition, and the profit motive.
TB_Q14.6.54: Describe how white-collar work, blue-collar work, and farming
have changed proportions in the U.S. economy from 1900 to the present.
TB_Q14.6.55: Describe the “quiet revolution.”