Question 1

Adam Smith demonstrated with his pin factory example that:

Accepted Answer

A)  capitalism constantly destroys old technologies in favor of new ones. 
B)  factory production cannot create products as desirable as craft production. 
C)  factory production leads to social problems, including alienation and poverty. 
D)  by dividing labor, factory production increases output by making it more efficient.

Question 2

Your text discusses four recent phenomena that make the current period of globalization novel: new markets,new means of exchange,new players,and new rules.Discuss each of these phenomena and use examples.

Accepted Answer

The answer of Your text discusses four recent phenomena that...

Question 3

Monetization refers to:

Accepted Answer

A)  an economic system in which property and goods are owned privately. 
B)  an economic system characterized by the presence of royalty. 
C)  the establishment of a widely accepted currency for exchange. 
D)  a system of payment based on products produced, not hours worked.

Question 4

The agricultural revolution was spurred on by new innovations such as:

Accepted Answer

A)  the steam engine. 
B)  factories. 
C)  the lightbulb. 
D)  crop rotation.

Question 5

On a feudal estate,Bob is the lord,Jim is the vassal,Tom is the serf,and Frank is the knight.Who receives the profits from the agricultural activity on the land?

Accepted Answer

A)  Jim 
B)  Bob 
C)  Frank 
D)  Tom

Question 6

A system of payment whereby workers are compensated on the basis of a wage not tied to the quality of the raw materials,accidents,or other exigencies in the production process refers to:

Accepted Answer

A)  payment per unit. 
B)  piecework. 
C)  hourly wage. 
D)  wage labor.

Question 7

Explain Henry Ford's family wage.How did economists and politicians view women's wages in Ford's time? What are the implications of the family wage for gender equality?

Accepted Answer

The answer of Explain Henry Ford's family wage.How did economists...

Question 8

One common strategy for attracting the most buyers,which can be accomplished through several tactics,is:

Accepted Answer

A)  lowering production cost. 
B)  flooding the market. 
C)  making charity contributions. 
D)  supporting labor unions.

Question 9

Georg Simmel saw the development of monetary payment systems as part of a historical evolution leading to:

Accepted Answer

A)  depersonalization of exchange. 
B)  treating humans like animals. 
C)  a communistic society. 
D)  bringing the working class and elites together.

Question 10

An honorarium is similar to a:

Accepted Answer

A)  wage; you get paid for what you produce. 
B)  gift for something you have agreed to do for someone, like giving a speech. 
C)  salary; you always know what you can expect in the form of money for your service. 
D)  scholarship; you are paid before you have performed your service.

Question 11

According to Adam Smith,the most efficient way to produce something is:

Accepted Answer

A)  with the use of skilled craftsmen who control the entire production process. 
B)  with a mechanical assembly line that carries the product to the workers. 
C)  through the use of interchangeable parts. 
D)  through a division of labor that breaks production into its constituent parts.

Question 12

How did the enclosure movement change the economy in the early Tudor period in England?

Accepted Answer

A)  It caused the price of land to rise. 
B)  It undermined the lords' source of authority. 
C)  It created a large, new pool of urban labor. 
D)  It made agriculture untenable in England.

Question 13

Attitudes about gender and work became self-confirming myths and enforced women's dependence.The unfair family wage pushed an incentive on women to:

Accepted Answer

A)  rebel against men. 
B)  marry and stay married. 
C)  have many children. 
D)  become witches.

Question 14

Most economists,policy analysts,and well-informed Americans say that the single policy that caused the credit bubble and bust of the 2000s was the repeal of the:

Accepted Answer

A)  Right to Organize Amendment. 
B)  First Amendment. 
C)  Banking Act of 1933. 
D)  Futures Modernization Act of 2000.

Question 15

Henry Ford was heralded for his generosity and genius when he created a new type of wage system whereby male workers were paid sufficient wages to support a dependent wife and children.What term refers to this type of payment?

Accepted Answer

A)  salary 
B)  honorarium 
C)  hourly wage 
D)  family wage

Question 16

Lawyers who don't provide a tangible object to their clients work in the

Accepted Answer

A)  service sector 
B)  professional sector 
C)  idea sector 
D)  civil sector

Question 17

Describe the evolution to capitalism starting with feudalism through the Industrial Revolution.Which changes in social and economic arrangements (i.e.,the enclosure movement,monetization,and development of the corporation)were important,and why did they matter?

Accepted Answer

The answer of Describe the evolution to capitalism starting with...

Question 18

The personal bankruptcy rate in America is higher than it has ever been.Why? Do any theories or theorists help explain this trend?

Accepted Answer

The answer of The personal bankruptcy rate in America is...

Question 19

Adam Smith,the father of liberal economics,determined that groups of individuals pursuing their own self-interest manage to stay intact and not fall into the chaos of civil strife because:

Accepted Answer

A)  individuals are focused on their own issues and do not realize the chaos around them. 
B)  individual self-interest in an environment of others acting similarly will lead to a situation of competition. 
C)  individuals will strive to make their contribution stand out. 
D)  individuals compete with people they know but feel strangers are no threat in the business world.

Question 20

Karl has been hired to paint a house blue,but he mixes the color wrong,and it turns out purple instead of blue.Under which wage system(s)would he be responsible for paying for new paint?

Accepted Answer

A)  piecework and payment in kind 
B)  wage labor 
C)  payment in kind 
D)  piecework

Exam 14: Capitalism and the Economy