Chapter 13 - Work and the Economy

Question 1

Economy

Answer 1

institution that organizes the production, distribution, and exchange of goods and services

Question 2

3 sectors of the economy

Answer 2

1. Primary/Agricultural Sector = farming, fishing, logging, mining
2. Secondary/Manufacturing Sector = urning raw materials into finished goods
3. Tertiary/Service Sector = includes the work of nurses, teachers, lawyers, hairdressers, computer programmers, etc.

Question 3

Productivity

Answer 3

amount produce for every hour worked

Question 4

Markets

Answer 4

social relations that regulate exchange of goods and services

Question 5

Divison of labour

Answer 5

refers to the specialization of work tasks; the more specialized the work tests in society, the larger the division of labour

Question 6

Two types of division of labour

Answer 6

1. Social division of labour = based on age and gender (preindustrial)
2. Detailed division of labour = rooted in taylorism

Question 7

Deskilling

Answer 7

The process by which work tasks are broken into simple routines requiring little training to perform; usually machinery replaces labour and increases management control over workers

Question 8

Fordism

Answer 8

method of industrial management used on assembly-line methods of producing inexpensive, uniform commodities in high volume

Question 9

Assembly Line

Answer 9

Model T, first automobile mass produced on assembly lines, ford

Question 10

Taylorism

Answer 10

developed precise working procedures after observing work processes

Question 11

Mcdonaldization

Answer 11

refers to the application of the rationalization principles of the fast food industry to others sectors of society

Question 12

The Precariat

Answer 12

a growing class of people for whom availability of work is uncertain and who earn low wages

Question 13

Labour Market Segmentation

Answer 13

the division of the market for labour not distinct settings.; work is found in different ways and workers ave different characteristics; slim chance of moving from one setting to another

Question 14

Primary Labour Market

Answer 14

high skilled, well educated workers employed in large corporations that enjoy high levels of capital investment; employment is secure; earnings are high; fringe benefits are generous

Question 15

Secondary Labour Market

Answer 15

large number of women and ethnic minorities, employees tend to be unskilled, low education, work in small firms that have low levels of capital investment, insecure employment, low earnings, fringe benefits are limited

Question 16

Human Relations School of Management

Answer 16

emerged in 1930s as a challenge to Taylor’s scientific management approach, advocated less authoritarian leadership on shop floor, careful selection and training of personnel, greater attention to human needs and employee job satisfaction

Question 17

Quality of Work Life

Answer 17

movement originated in Sweden and Japan, small groups of workers and managers collaborating to improve quality of goods produced and communication between workers and managers

Question 18

Co-determination

Answer 18

a german system of worker participation that allows workers to help formulate overall business strategy, German workers’ councils review and influence management policies on a wide range of issues, including when and where new plans should be built and how capital should be invested in technological innovation

Question 19

Unions

Answer 19

organizations of workers that seek to defend and promote their members’ interests

Question 20

Internal Labour Markets

Answer 20

social mechanisms for controlling pay rates, hiring and promotions within corporations while reducing competition between a firm’s workers and external workers

Question 21

Professionals

Answer 21

people with specialized knowledge acquired through extensive higher education

Question 22

Free Market

Answer 22

prices determined by supply and demand

Question 23

Regulated Market

Answer 23

supply and demand are limited by social forces to control the prices

Question 24

Capitalism

Answer 24

the dominant economic system in the world; private ownership of property, competition in pursuit of profit

Question 25

Corporations

Answer 25

legal entities that can enter into contracts and own property; taxed at lower rate than individuals; owners normally are not liable for corporation’s debt or any harm it may cause the public

Question 26

Communism

Answer 26

name given by Karl Marx for the classless society that, he said, is bound to develop out of capitalism; public ownership of certain basic industries, substantial government intervention in the market

Question 27

Globalization

Answer 27

1980s, benefited corporations

Question 28

Democratic Socialist

Answer 28

countries are characterized by government ownership of some basic industries and substantial government intervention in the operation of the market

Question 29

Oligopolies

Answer 29

giant corporations that control part of the economy; few in number and tend not to compete against one another; they can set prices at levels that are most profitable for them

Question 30

Conglomerates

Answer 30

large corporations that operate in several industries at the same time

Question 31

Interlocking Directorates

Answer 31

formed when an individual sits on the board of directors of two or more non-competing companies

Question 32

What caused each sector of the economy to rise to dominance at a particular time?

Answer 32

revolutions regarding how people work

Question 33

In Canada, what is happening to the proportion of workers in the manufacturing sector?

Answer 33

it is steadily shrinking

Question 34

Agricultural revolution in work

Answer 34

Began 10,000 years ago; people established permanent settlements; started herding and farming; led to soaring productivity

Question 35

Industrial revolution in work

Answer 35

Began 220 years ago; machines greatly increased producers’ ability to supply markets

Question 36

Postindustrial revolution in work

Answer 36

Took place in 20th century as service industries came to dominate economy

Question 37

Why is no economy purely Laissez-Faire?

Answer 37

the state has to intervene heavily to create markets in first place

Question 38

Two of the most effective means that businesses have adopted to cut costs and boost profits

Answer 38

introducing new technologies, organizing the workplace in more efficient ways