Chapter 16 - Economic Groups And Systems

Question 1

Economic System

Answer 1

The social institution that provides for the production, distribution, and consumption of goods and services.

Question 2

Capitalism

Answer 2

An economic system in which all of the means of production are privately owned.

Question 3

Socialism

Answer 3

And Economic system based on state ownership of the means of production.

Question 4

Welfare capitalism / democratic socialism

Answer 4

A mixed economy in which private and public ownership are both practiced extensively and one in which the goods and services vital to the society, such as transportation systems and medical care, are run by the State.

Question 5

Communism

Answer 5

An economic system in which members of the society jointly own the means of production.

Question 6

Market Economy

Answer 6

An economy in which the price and production of goods are determined by what people are willing to pay in the market place.

Question 7

Free Market

Answer 7

An economic system in which all people are theoretically free to buy, sell, and make a profit.

Question 8

Planned economy

Answer 8

an economy in which the production and prices of goods are planned by the government.

Question 9

Gross domestic product

Answer 9

The total value of all final goods and services produced within the borders of a country per year.

Question 10

Structural functional perspective on capitalism

Answer 10

Because people have needs, large corporations produce large amounts of supply to meet those needs. Therefore both society and large corporations benefit from this. A dysfunction is that when there are monopolies the large holder can set the price they want for the supply.

Question 11

Conflict theory of Capitalism

Answer 11

Belief that power is given to the people who began to use money (assets) and accumulate it and use it to carry out production. The people who did not accumulate wealth had to pay with labor. Eventually more and more production meant more and more workers leaving the working class poor and unable to achieve the wealth of the elite.

Question 12

Protestant ethic

Answer 12

The view associated with the puritans that hard work is valuable for its own sake. (Those who were “building gods kingdom” received benefits from it. Those who were lazy did not.)

Question 13

Mass Production

Answer 13

The production of many items of a product, which lowers the cos per item and reduces the time needed to make each one.

Question 14

Vertical expansions

Answer 14

Business expansions in order to own everything related to a business, from raw materials to sales outlets.

Question 15

Horizontal Expansion

Answer 15

Corporations taking over similar businesses in order to gain a monopoly and reduce competition.

Question 16

Diversification

Answer 16

The corporate practice of entering business in a variety of areas in order to protect profits. (Like target that sells electronics, toys, food, home essentials. they don’t just rely on sales of toys like toys’r’us).

Question 17

Multinational corporation

Answer 17

Corporations that do business in a number of nations.

Question 18

Primary workers

Answer 18

Workers who produce raw materials, such as food or minerals.

Question 19

secondary workers

Answer 19

Workers who produce manufactured goods from raw materials.

Question 20

Tertiary workers

Answer 20

Workers who provide a service, such as doctors, lawyers, politicians, police officers, and secretaries.

Question 21

Alienation

Answer 21

A feeling of estrangement or dissociation.

Question 22

Scientific management

Answer 22

A method of managing assembly-line workers such that every movement is efficient.

Question 23

Human relations school

Answer 23

A form of industrial management that considers the psychological makeup of workers, their attitudes toward management, peer pressures, and similar factors in an attempt to promote worker efficiency.

Question 24

Lifetime jobs

Answer 24

An employment practice in which workers are guaranteed a job for the lengthy period of time.

Question 25

Quality control circles

Answer 25

Meetings at which workers discuss ways to improve production and set policy to reach their goals.

Question 26

Unionization

Answer 26

The process of organizing worker to improve their wages and working conditions.