Chapter 8: The Economy
Multiple Choice



1.  

What is the name for people who take risks in order to gain a profit in the marketplace?

business people
venture capitalists
entrepreneurs
free-marketeers


2.  

Which of the following did NOT occur as a result of industrialization?

the family became the main economic unit
work became more impersonal
factories replaced the family as the primary unit of production
bureaucratic rules replaced traditional authority


3.  

Which is NOT a characteristic of capitalism?

pursuit of profit
extensive red tape caused by excessive governmental intervention
laissez-faire government economic policy
private ownership of the means of production


4.  

Which of the following is NOT a problem of capitalism?

the free market may devastate entire communities
capitalist economies are subject to the rise and fall of cycles.
the free market ignores the poor
all of the above


5.  

What is the term for the hands-off approach to the economy taken by governments in capitalist systems?

mixed market
state entrepreneurship
laissez-faire
none of the above


6.  

Which is NOT a criticism of capitalism?

the free market ignores the poor
it provides no incentives for businesses to protect the environment
it is heartless
all of the above are criticisms of capitalism


7.  

Which of the following is NOT a characteristic of socialism?

the government decides how goods are distributed
the government decides which goods are produced
the government owns and operates businesses and industries
the government encourages the pursuit of profit


8.  

What is the term for the bundle of rights associated with the use and disposal of an object?

copyright
ownership
patent
civil rights


9.  

What type of economy did the United States become once it adopted the welfare program?

capitalist
mixed
socialist
communist


10.  

Capitalism and socialism have been:

incorporating elements of communism
by-passed by the postindustrial economy
converging toward some middle ground
growing more unlike each other


11.  

When did the United States begin to converge toward a more socialist economy?

during the Great Depression
shortly before World War I
after World War II
never


12.  

Which is true of corporations?

they may not be as democratically run as they seem to be
they separate ownership and management
they may be part of a conglomerate
all of the above


13.  

General Motors has direct and indirect links with 700 other corporations because members of its board of directors sit on other corporations' boards. This is called:

multinationals
interlocking directorates
conglomerates
none of the above


14.  

Honda is headquartered in Japan but has many plants in the United States. Honda is a/an:

conglomerate
multinational
interlocking directorate
entrepreneur


15.  

Corporations that are composed of other corporations that produce a variety of products and conduct businesses in several markets are called:

interlocking directorates
multinationals
transnationals
conglomerates


16.  

Which is NOT true of unemployment?

it causes stress in individuals
it wastes human resources
it costs the government money
all of the above


17.  

Which is NOT true according to functionalism?

capitalism is self-contradictory and will destroy itself
capitalism encourages innovation
capitalism allows people to convert wealth into power
capitalism encourages entrepreneurialism


18.  

Many people in the U.S. were afraid that they would lose their jobs as a result of downsizing. What is the term for this fear?

job despair
job-loss anxiety
career desocialization
none of the above


19.  

Which sociological perspective argues that work and career socialization takes place throughout the life course?

Functionalism
Conflict
Symbolic Interaction
none of the above


20.  

Which perspective argues that capitalism produces great inequalities among people?

Functionalism
Conflict
Symbolic Interaction
none of the above


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