Exam 13: The Economy

The movement of U.S. corporations to countries overseas is motivated by higher profits and cheaper labor.

A positive consequence of the relocation of multinational corporations is that foreign workers acquire new skills that allow them to advance in American industries.

The presence of large, bureaucratic organizations with relatively stable production and sales, jobs requiring developed skills, and good pay for highly educated people and unionization for others is characteristic of the secondary sector of the labor market.

The most common contemporary technology for worker control is telephone taps.

In capitalist societies, ________ is the mechanism for determining what is produced and at what price. It is the mechanism that keeps individual profit seeking in check.

Discuss the relationship between capitalism and inequality.

A division of labor between the sexes preserves the differential power, privilege, and prestige of men.

The socialist principle of egalitarianism emphasizes the responsiveness of the representatives of the state to the wishes of the public they serve.

The 1914 passage of the ________ Act made it illegal for a person to serve on the corporate board of two companies that were in competition with each other.

Business interference has been a factor in the decline of unions.

Marginal firms where product demand is unstable, jobs characterized by poor working conditions, low wages, few opportunities for advancement, and little job security characterize the primary sector of the labor market.

________ is an economic system in which the means of production are owned in common by the people for their collective benefit.

Which of the following is not a consequence of the trend toward megamergers?

Although sweatshops occur in various types of manufacturing, they occur most frequently in the ________ industry.

Democracy is not a part of socialism, as representatives are answerable to no one and respond only to the ruling class.

Laissez-faire, which is a government policy that allows the marketplace to operate unhindered with a minimum of government interference, must be present for true capitalism.

The core institutions in society are the ________.

The scientific management of work is referred to as ________.

In a purely capitalistic society, the government would practice an enlightened form of control of the economy.

Contrary to classic economic theory, huge corporations do not respond to the demands of the market but, instead, control market demands.