Chapter 12: Economics and Politics

Question 1

Special-interest group

Answer 1

• Strong in nations where political parties tend to be weak

- Employ lobbyists to work on their behalf

Question 2

Political action committee (PAC)

Answer 2

• Formed by a special-interest group, independent of political parties
• Organized to raise and spend money in support of political goals

Question 3

Intergovernmental organization

Answer 3

an organization composed primarily of sovereign states (referred to as member states), or of other intergovernmental organizations

Question 4

The Agricultural Revolution

Answer 4

-The earliest societies were hunters and gatherers with no distinct economy
-With surplus, the economy was a distinct social institution
+Agricultural technology
+Job specialization
+Permanent settlements
+Trade

Question 5

The Industrial Revolution

Answer 5

Created economic change in five ways:

1) New sources of energies
2) Centralization of work in factories
3) Manufacturing and mass production
4) Specialization
5) Wage labor

Question 6

The Immigration Revolution

Answer 6

Skip

Question 7

The Information Revolution

Answer 7

Altered fundamental character of work in three ways:

1) From tangible products to intangible ideas
2) From mechanical skills to literacy skills
3) From factories to almost anywhere

Question 8

Primary sector

Answer 8

Generates raw materials from environment

Question 9

Secondary sector

Answer 9

Transforms raw materials into manufactured goods

Question 10

Tertiary sector

Answer 10

Generates services rather than goods

Question 11

Globalization of the economy

Answer 11

Five major consequences:

1) Global division of labor
2) More products pass through many nations
3) National governments no longer control the economic activity within their borders
4) Small number of businesses control a vast share of the world’s wealth
5) Concerns raised about the rights and opportunities of workers

Question 12

Socialism

Answer 12

Economic system in which natural resources and the means of producing goods and services are collectively owned

Question 13

Welfare capitalism

Answer 13

Economic and political system that combines market-based economy and social welfare programs

Question 14

State capitalism

Answer 14

Economic and political system in which companies are privately owned but cooperate closely with government

Question 15

Justice in capitalist economic system

Answer 15

Freedom of the marketplace is a capitalist system

Question 16

Capitalism

Answer 16

Economic system in which natural resources and the means of producing goods and services are privately owned

Question 17

Justice in socialist economic system

Answer 17

Meeting everyone’s needs in roughly equal manner in a socialist system

Question 18

Oligopoly

Answer 18

a market form in which a market or industry is dominated by a small number of sellers (oligopolists)

Question 19

Traditional authority

Answer 19

• Power legitimized through respect for long established cultural patterns
• Authority declines as societies industrialize
• Traditional authority is also a source of strength for patriarchy

Question 20

Rational-legal authority

Answer 20

• Power is legitimized by legally enacted rules and regulations.
• Rationally enacted rules also guide the use of power in everyday life
• Authority resides not in the person but in the office

Question 21

Charismatic authority

Answer 21

• Power legitimized through extraordinary personal ability and devotion and obedience are inspired.
• Authority depends less on a person’s ancestry or office and more on personality.

Question 22

Routinization of charisma

Answer 22

transforms authority into some combination of traditional and bureaucratic authority

Question 23

Democratic political system

Answer 23

-Authority in hands of elected leaders chosen by people in elections
-U.S. is not truly democratic bc of:
+Extensive use of unelected bureaucratic officials
+Wealthy have more political influence than impoverished

Question 24

Authoritarian political system

Answer 24

• Political system that denies popular participation in government
• Authoritarian government is indifferent to people’s needs.
• Examples: Saudi Arabia, Bahrain, Ethiopia

Question 25

Totalitarian political system

Answer 25

• Highly centralized political system that extensively regulates people’s lives
• Seeks to bend people to the will of the government
• Examples: Vietnam, North Korea