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Chapter 01 - Capitalism and the Role of Government
Internet Exercise and Supplements
Answer to Internet Exercise (p. 39)
1. Some of the criticisms found on the site, http://www.globalpolicy.org,
[http://www.globalpolicy.org/globalization/globalization-of-law.html;
http://www.globalpolicy.org/globalization/globalization-of-politics/movement-for-global-justice.html
] include: Global capital undermines local and national politics; no effective administrative
structure regulates global businesses; globalization is a source of repression and causes
suffering, disorder and unrest; globalization uproots old ways of life, threatens traditional
livelihoods and cultures. Students should discuss their view of the merits of several of these (or
other) criticisms of globalization.
John Feffer’s argument that the E.U. should be more influential than the U.S. in world affairs is
based on such facts as: one in eight United Nations countries is an E.U. member state; the E.U.
market is the world’s largest multinational market; the euro is a stronger currency that the U.S.
dollar; Europeans work fewer hours than Americans, live longer, and have a smaller percentage
of poor in its population; the U.S. has a higher government debt and a larger trade deficit; a
recent poll indicates that 34% of Americans agree that Europe should be the dominant global
policy maker. Again, students should discuss their views on the merits of several of these
observations.
General Suggestions for All Internet Exercises
1. Require students to identify certain basic information on each project, including a full internet
address, identification of last date accessed, and who/what organization maintains the web server
on which the article was found (e.g., news organization, nonprofit organization, private individual,
educational institution, for-profit corporation). Where a particular exercise has students choosing
what website to use, it is also useful to require that students supply a copy of the actual first page
as part of the assignment.
Student Projects
1. One student in each class can be required to bring to class a web article related to that chapter's
topics.
2. Students can select a public corporation of their choosing (e.g., an industry or company they are
interested in) and be required to do all/some of their course web projects from the point of view of
that company/industry.
3. Find a report on the internet demonstrating an example of a foreign country extending capitalism
in that country. How is what that country is doing now different from how it acted previously?
4. Have the class build and maintain a class web page with links to websites found by students.
Supplemental Web Addresses
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Chapter 01 - Capitalism and the Role of Government
Net search engines:
http://www.google.com
http://www.yahoo.com
http://www.altavista.com
http://www.lycos.com
Online information for individual companies, accessed (mostly) by company name—
http://www.sec.gov/edgar/searchedgar/webusers.htm (EDGAR Database of corporate information)
http://www.commerce.net (CommerceNet; links to business home pages, earnings and annual
reports)
News sources online:
http://www.nytimes.com
http://csmonitor.com
http://www.bloomberg.com
http://www.washtimes.com
Answers
Answers to ‘Greed’ Questions (p. 5)
1. Students’ answers will vary. Some of them may say that the concentrated financial sector in the
U.S. is a threat to economic growth and stability. Some of them may also mention that mergers
and acquisitions pose a threat to national economic development and growth. Some others may
[http://www.nytimes.com].
Of course, the market seems clearly to be calling for ever bigger banks, and any kind of
government intervention would be considered a further betrayal of market principles. Giant size is
2. The students could have a discussion on the greed of financial leaders and greed’s role in the
fiscal crisis.
The New York Times reports that CEOs of major corporations (not limited to banks) made as
much or more in 2010 as they had been making prior to the recession. Fourth quarter, 2010
American business profits were up 29.2 percent, which was the fastest growth in more than 60
years. Executive pay increased by 12 percent over 2009. At the same time, unemployment
Answers to ‘Vast Resources’ Questions (p. 6)
1. Ed Miliband refers to the need for a more responsible capitalism.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
Answer to ‘Man’s Rights’ Questions (p. 10)
1.
a. According to the 2002 Index of Economic Freedom, developed by the Heritage Foundation
and The Wall Street Journal, the world is growing increasingly freer. Worldwide, 73 countries
received better scores that in the previous report, while 53 received worse scores. The 2008
b. Based on the Index of Economic Freedom, Hong Kong, Singapore and New Zealand, were
2.
a. Banks said her nephews felt rejected, “like we didn’t matter,” when cut in front of, but when
she shifted to the carpool lane on the drive home, they were exultant. Robert Niles, editor of
Theme Park Insider said, as a businessperson, he understood the practice because:
b. Students’ answers will vary. Of those readers responding to the Parade question, 34% said,
c. DeSimone did not become governor of Nevada. He said cars would need to pass a safety
inspection, vehicle information would be loaded into a database, and drivers would buy a
3.
a. Students’ answers will vary. Kids need to learn the lessons taught on the playground. For
example, when one gets pushed down, one learns to pick oneself up and get back in the
game. One also learns to defend oneself while being willing to compromise and not hold a
b. Students’ answers will vary. The students could have a discussion based on this question.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
Answer to ‘Free Market Solution to the Baby Shortage?’ Questions (p. 11)
1.
a. Technically, the donor’s time is sold, but clearly the industry has emerged as a market for
eggs with buyers coming from around the world.
b. The students could have a discussion based on this question. According to USA Today, one
experienced donor, at the University of California, Berkeley, says she isn’t worried about
2.
a. The students could have a discussion based on this question.
b. The students could have a discussion based on this question.
3. The students could have a discussion based on this question. In small groups, students might be
asked to identify topics for regulation of the fertility industry, and then they could share these with
4. The following excerpt has been taken from Thomas Frank’s, writing in The Wall Street Journal:
“If surrogacy ever becomes a widely practiced market transaction, it will probably make
5. The students could have a discussion based on this question.
Answers to ‘Room for Big Ideas’ Questions (p. 13)
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Chapter 01 - Capitalism and the Role of Government
1. The students could have a discussion based on this question. Some of them may bring up a few
points such as—“Boldness of enterprise is the foremost cause of [America’s] rapid progress, its
Answers to ‘Toll Roads, Parking Meters, and Congestion Pricing’ Questions (p.
14)
1. The students could have a discussion based on this question. One factor to consider is whether
2. The golf courses are probably subsidized because they tend to be used by people of influence
3.
a. A number of nations have successfully privatized their postal service. The Washington Post
explained the Swiss approach as follows:
b. A UPS spokesman said, “We believe that the government plays a role in terms of ensuring
that every mailbox is reached every day,” “That is not a responsibility that UPS would want.”
Answers to ‘Privatize Higher Education?’ Questions (p. 15)
1.
a. Students’ opinions will vary. Depending on the school, a for-profit approach could well reduce
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
b. Perhaps students could usefully think about what current services, amenities, and defining
c. Students in public colleges and universities should think about how their behavior and
2. Steven Pearlstein says, “Indeed, the real potential of for-profit schools is their focus on teaching
and learning. Unlike traditional universities, they have been aggressive in finding ways to use
Answers to ‘Firefighters Watch a House Burn’ Questions (p. 16)
1.
a. The service would probably fail financially if homeowners were allowed to pay for it only
b. Students’ opinions will vary. Increasing privatization and reliance on free market principles in
2. Students’ opinions will vary. Privatized fire protection is increasingly common in the western
United States where governments sometimes supplement public resources with private
3. Critics worry about the quality of that private sector service and whether increasing private
protection will gradually erode public protection. The result might be that fire protection would be
Answer to ‘Communism to Capitalism: A Bumpy Road’ Question (p. 19)
1. Students’ opinions will vary.
Answer to ‘China—Politics’ Question (p. 23)
1. Students’ answers will vary. According to Wadhwa, China is not innovating and they haven’t
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
Answers to ‘Russia—Politics’ Questions (p. 24)
1. Students’ opinions will vary. With regard to China, critics of the policy say that China’s fertility rate
is lower than the official estimate, thus reducing the overpopulation risk. Of course, the population
policy has led to widespread abortions; particularly of females. China’s population has remained
relatively stable in recent decades.
2. Students’ answers will vary. Rodrik says that Chinese dominance is possible only if it continues its
current economic progress while maintaining social cohesion. Rodrik argues that anything less
The Chinese and their government are wedded to a different conception of society and polity—
community-based rather than individualist, state-centric rather than liberal, authoritarian rather
than democratic.
3. The sanctions led to a credit crunch for banks and companies, falling oil prices among other
things. The effect of sanctions are likely to have significant long-term impacts. Students’ answers
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Chapter 01 - Capitalism and the Role of Government
Answer to ‘Speeding Ticket’ Question (p. 26)
1. Students’ opinions will vary. The wealth-based ticket policy reflects the communal values of
northern Europe. Those values apparently do not enjoy majority support in the United States.
Answer to ‘Is the Welfare State a Key to Personal Happiness?’ Questions (p.
28)
1 & 2. The students could have a discussion based on these questions.
Answer to ‘Pets or People?’ Question (p. 33)
1. One way to address a better life for poor children is to develop a program of conditional cash
grants to families (with the money going to mothers, typically) as is being done successfully in
Brazil, Mexico and other nations, according to a 2011 New York Times Report. Brazil’s Bolsa
Familia (Family Grant) and Mexico’s Oportunidades give regular government payments to poor
Answers to ‘Practicing Ethics: The Moral Decline of White Working-Class
America?’ Questions (p. 34)
1. Students’ answers will vary. Students might agree with Murray that the erosion of traditional
middle-class morals/values helps explain inequality in contemporary America. They may say that
the traditional values such as marriage, religion, honesty, and hard work were the fundamental
2. Students’ answers will vary. They may agree with Murray that cognitive ability or IQ has played a
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
3. Students’ answers will vary. Some of them may say that a large and growing gap in income and
Answers to ‘Declining Social Capital’ Questions (p.35)
1.
a. The students could have a discussion based on this question. It may be useful to have
b. The students could have a discussion based on this question. In pairs, triads, or small
groups, students might be asked to create an argument, supported by examples from their
2.
a. Students’ answers will vary. Students could use points, in their discussion, from Lawton’s
elaboration on his thesis: Americans harbor an ethos of individualism. And while this
b. Students’ answers will vary. They might say that the American culture promotes
Answers to ‘Practicing Ethics: Technology and Loneliness’ Questions (p.36)
1. Students’ answers will vary. Some students may agree with Turkle that people have sacrificed
2. Students’ answers may vary. Students may cite the negative or/and positive effects of excessive
reliance on social technology. For example, students may cite a 2008 survey found 60 percent
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - Capitalism and the Role of Government
Answers to ‘Individualism Up, Morality Down?’ Questions (p. 38)
1. Students’ answers will vary. Students may agree with David Brooks and say that society has
become more individualistic, it has also become less morally aware, because social and moral
2. Students’ answers will vary. Some students may take the conservatives’ view as quoted by David
Brooks— “if we could just reduce government to the size it was back in, say, the 1950s, then
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
