Chapter 10: Work and Wealth

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Questions and Answers

What is a key difference between a driver for a ride-sharing app and a traditional employee in terms of wage determination?

Wages are set by the app's algorithm. (correct)

Wages are determined through employee performance reviews.

Wages are determined by collective bargaining.

Wages are set by the employer.

Which of the following is true for independent contractors but not for traditional employees?

They set their own fees for services. (correct)

They can be fired for misconduct.

They are entitled to unemployment insurance.

They work under an employer's supervision.

What effect does monitoring typically have on employees?

Reduces productivity due to increased anxiety.

Promotes a sense of autonomy among employees.

Increases job satisfaction significantly.

Makes employees more focused on work. (correct)

What can be a potential negative consequence of monitoring employees?

Reduced job satisfaction. Signup and view all the answers

In what way does a driver for a ride-sharing app compare to a traditional independent contractor regarding their work assignment?

Both find customers independently. Signup and view all the answers

What is one responsibility that traditional employees have that ride-sharing drivers do not?

Being eligible for minimum wage. Signup and view all the answers

How do the social security tax responsibilities differ for independent contractors compared to traditional employees?

Independent contractors pay only their own portion of taxes. Signup and view all the answers

What is the maximum duration that an H-1B visa allows a foreign worker to stay and work in the United States?

Six years Signup and view all the answers

Which of the following is a requirement for a company to obtain an H-1B visa for a foreign worker?

There must be no qualified American workers available. Signup and view all the answers

What is the primary purpose of an L-1 visa?

To facilitate the transfer of workers from overseas to the U.S. Signup and view all the answers

Which country is known as the world's leading producer of computer hardware?

China Signup and view all the answers

What does the concept of the digital divide primarily address?

The disparity in access to modern information technology among different populations. Signup and view all the answers

What impact does automation have on product demand?

It increases demand for the product. Signup and view all the answers

How has the number of manufacturing jobs worldwide changed according to recent trends?

It is increasing. Signup and view all the answers

What was a characteristic of laborers in medieval times?

They reduced working hours when wages increased. Signup and view all the answers

What does Martin Carnoy suggest about workers today compared to those 100 years ago?

Workers today work less. Signup and view all the answers

What was a consequence of increased productivity?

Higher material standards of living. Signup and view all the answers

What did Stuart do when asked to delay his vacation?

He agreed and canceled his planned vacation. Signup and view all the answers

Under Kantian/Social Contract Theory, what was concluded about Stuart's decision regarding his vacation?

Stuart did nothing wrong. Signup and view all the answers

What was an important offer made to Stuart by his supervisor?

Three weeks' vacation next year and round-trip airfare. Signup and view all the answers

What is a misconception regarding the role of automation in job creation?

Automation only eliminates jobs. Signup and view all the answers

What was the calculated score for the San Diego trip based on the utilitarian evaluation?

2 Signup and view all the answers

Which alternative had a higher certainty according to the evaluation?

San Diego: 100% Signup and view all the answers

How much time does the San Diego trip take compared to the Australia trip?

Three times better Signup and view all the answers

What does the virtue ethics evaluation indicate about Stuart's decision?

He lacked self-consideration and courage Signup and view all the answers

What factor makes the San Diego option preferable in terms of propinquity?

It is scheduled for next week Signup and view all the answers

According to the utilitarian evaluation, which trip was deemed the better option overall?

San Diego was the better option. Signup and view all the answers

What impact did Stuart's decision have on his coworkers according to the virtue ethics evaluation?

It made reasonable vacations less likely. Signup and view all the answers

What is a significant outcome of rapid increases in microprocessor speeds?

Enhanced intelligent behavior by machines. Signup and view all the answers

Which concern did both options share regarding purity during the evaluation?

Worry about an upset boss. Signup and view all the answers

What percentage certainty was associated with the Australia trip in the evaluation?

25% Signup and view all the answers

What notable achievement in AI occurred in 1997?

Deep Blue defeated Gary Kasparov in chess Signup and view all the answers

What year did the robotic vacuum cleaner make its debut?

2001 Signup and view all the answers

Which AI program won against human champions in Jeopardy! in 2011?

Watson Signup and view all the answers

How many miles did Google self-driving cars log without causing an accident from 2009 to 2015?

1 million miles Signup and view all the answers

What significant milestone did Honda's ASIMO achieve?

Climbed and descended stairs Signup and view all the answers

In which year did Google’s AlphaGo defeat the world’s top Go player?

2017 Signup and view all the answers

What is one moral question raised about robotics?

Is it ethical to replace human workers with machines? Signup and view all the answers

What was the first AI program to successfully compete in a game against humans?

Deep Blue Signup and view all the answers

Which AI achievement occurred in 2005?

First autonomous vehicle race Signup and view all the answers

What issue does the advancement of intelligent machines raise regarding privacy?

Analyses of electronic records Signup and view all the answers

What is one disadvantage of telework related to management?

Threatens managers' control and authority Signup and view all the answers

Which of the following is a characteristic of the gig economy?

Increased reliance on temporary workers and subcontractors Signup and view all the answers

What is a potential criticism of gig economy jobs?

They can be viewed as last-resort jobs with low competition Signup and view all the answers

What is one environmental benefit of telework?

Reduction in commuting-related emissions Signup and view all the answers

What is a common concern for teleworkers regarding their work experience?

Feeling isolated and out of the loop Signup and view all the answers

What distinguishes a driver for a ride-sharing app from a traditional employee regarding setting wages?

The driver sets their own fees for services. Signup and view all the answers

Which of the following is a right that traditional employees possess but ride-sharing app drivers do not?

Eligibility for unemployment insurance. Signup and view all the answers

How does the responsibility of Social Security taxes differ between independent contractors and traditional employees?

Independent contractors pay only their portion of Social Security taxes. Signup and view all the answers

What is a common reason companies monitor their employees?

To identify inappropriate use of company resources. Signup and view all the answers

Which aspect of monitoring has been shown to negatively impact employees?

It reduces job satisfaction. Signup and view all the answers

Which of the following statements is true regarding the ability of ride-sharing drivers to be 'fired'?

Ride-sharing drivers can be fired for inappropriate behavior. Signup and view all the answers

What can monitoring in workplaces also be used to gauge?

Productivity. Signup and view all the answers

What was the percentage decrease in manufacturing employment in the U.S. between 1979 and 2011?

40% Signup and view all the answers

Which factors are associated with the impacts of information technology on employment?

Increases in productivity and job destruction Signup and view all the answers

What effect does increased workplace automation typically have on remaining employees?

Increased workload to avoid layoffs Signup and view all the answers

What are some of the types of jobs lost due to automation in the U.S. workforce?

Secretarial, clerical, and bookkeeping jobs Signup and view all the answers

What term describes the social phenomenon where a few individuals or companies reap the vast majority of rewards in a given market?

Winner-take-all society Signup and view all the answers

Which impact does globalization have on the job market?

Increased competition across borders Signup and view all the answers

What has been the general trend regarding job availability in the face of increased productivity?

Fewer total job opportunities due to automation Signup and view all the answers

How did General Motors' employment change after their bankruptcy in 2009?

Employment dropped by 30% Signup and view all the answers

What is a significant concern related to the introduction of information technology in workplaces?

Increased workplace monitoring Signup and view all the answers

What effect does automation have on product prices?

It lowers prices, stimulating demand. Signup and view all the answers

How does higher productivity impact living standards?

It contributes to a higher material standard of living. Signup and view all the answers

What was a common characteristic of laborers in medieval times?

They resisted working if they had enough money. Signup and view all the answers

What reasoning was employed to determine that Stuart did nothing wrong?

He was not obligated to visit his parents. Signup and view all the answers

Which option best explains the impact of automation on job creation?

Automation can lead to job creation by increasing demand. Signup and view all the answers

What was a specific offer made to Stuart to convince him to cancel his vacation?

Three weeks of vacation the following year. Signup and view all the answers

What conclusion can be drawn from Martin Carnoy's assertion about workers today compared to 100 years ago?

Workers today work fewer hours than they did 100 years ago. Signup and view all the answers

Which notable achievement in AI occurred first?

IBM's Deep Blue defeats Gary Kasparov Signup and view all the answers

What significant milestone did Watson achieve in 2011?

Won against two human Jeopardy! champions Signup and view all the answers

How has the number of manufacturing jobs worldwide changed recently?

It has increased despite automation. Signup and view all the answers

Which of the following statements is correct regarding the relationship between increased productivity and job availability?

Increased productivity can lead to more job creation. Signup and view all the answers

Which statement is true about Google's self-driving cars?

They logged over one million miles without an accident from 2009 to 2015 Signup and view all the answers

What year did Honda’s ASIMO achieve the ability to climb and descend stairs?

2000 Signup and view all the answers

Which of these achievements is associated with the year 2017?

AlphaGo defeating Ke Jie Signup and view all the answers

What moral question regarding robotics concerns the potential for labor obsolescence?

Is it wrong to make machines that make human labor obsolete? Signup and view all the answers

Which AI achievement took place in 2005?

Five autonomous vehicles completed a course Signup and view all the answers

Which year saw the introduction of the first robotic vacuum cleaner?

2001 Signup and view all the answers

What concern is raised regarding intelligent machines and privacy?

How will privacy change with constant electronic record analysis? Signup and view all the answers

Which AI program is known for its victory over Gary Kasparov?

Deep Blue Signup and view all the answers

How does automation primarily affect job creation in the economy?

Automation creates new jobs by increasing demand for products. Signup and view all the answers

What was a characteristic of laborers in medieval times according to historical analysis?

Laborers often resisted working if they had sufficient financial resources. Signup and view all the answers

What conclusion is drawn about Stuart's decision to cancel his vacation?

Stuart's decision was ethically acceptable with no obligation to visit his parents. Signup and view all the answers

Which of the following best describes the impact of increased productivity on living standards?

Increased productivity contributes to a higher material standard of living over time. Signup and view all the answers

What does Martin Carnoy suggest about work patterns of today's workers compared to those 100 years ago?

Workers today generally have more leisure time than in the past. Signup and view all the answers

What does the case study regarding Stuart illustrate about workplace obligations?

Workplace obligations can sometimes conflict with family responsibilities. Signup and view all the answers

In what way does automation influence the global landscape of manufacturing jobs?

The introduction of automation has resulted in an increase in manufacturing jobs overall. Signup and view all the answers

What is one main consequence of the implementation of tiered internet service according to its opponents?

Hindered innovation among smaller companies Signup and view all the answers

Which factor is NOT typically associated with the ‘winner-take-all’ phenomenon?

Increase in average wages across all sectors Signup and view all the answers

Why have massive open online courses (MOOCs) not effectively closed the achievement gap?

Students in lower GPA brackets perform worse in MOOCs Signup and view all the answers

What regulatory change occurred under President Trump regarding net neutrality?

Repeal of net neutrality regulations established in 2015 Signup and view all the answers

Which of these is a reason for the continuing increase in tuition costs at US universities?

Decrease in government funding for higher education Signup and view all the answers

What effect does the integration of information technology into firms typically have on organizational structures?

It creates flattened organizational structures. Signup and view all the answers

Which job category has seen an increase in demand due to greater use of information technology in the workplace?

Computer systems analysts Signup and view all the answers

How does the cost of interactions affect the flow of information within organizations?

Higher costs lead to less information sharing. Signup and view all the answers

What is one of the results of improved communication among business units due to technology integration?

Elimination of transactional middlemen Signup and view all the answers

Which of the following job roles is likely to see a decrease in demand in the future workplace?

Bookkeepers Signup and view all the answers

What is a key characteristic of organizations when interactions are inexpensive and fast?

They enable a flatter organizational structure. Signup and view all the answers

Which of the following categories has experienced the highest increase in workplace demand as a result of technological integration?

Software engineers-systems Signup and view all the answers

What is typically the result of integrating automated systems in the supply chain?

Elimination of certain job roles Signup and view all the answers

In what way does inexpensive interaction impact employee relationships within firms?

Allows for a more fluid information exchange. Signup and view all the answers

What is a primary disadvantage of telework related to team dynamics?

Teleworkers are less visible to their managers Signup and view all the answers

Which factor is primarily cited as a criticism of gig economy jobs?

They can drive down wages due to competition Signup and view all the answers

In terms of employee recruitment, what is one significant advantage of telework?

It helps retain top employees Signup and view all the answers

How do proponents of the gig economy view the nature of these jobs?

They feel these jobs empower workers with independence Signup and view all the answers

Which of the following is a specific challenge teleworkers might face regarding information security?

Increased risk of sensitive information being less secure Signup and view all the answers

What is one potential benefit for companies that participate in the gig economy?

Reduction in spending on temporary labor Signup and view all the answers

What is one of the key advantages of multinational teams?

More operational hours Signup and view all the answers

What is a common misconception about telework among managers?

It can threaten managers' control and authority Signup and view all the answers

Which factor has notably contributed to the feasibility of global enterprises since the mid-1990s?

Declines in the cost of computing Signup and view all the answers

Which concern is often raised regarding the social aspect of telework?

Isolation experienced by teleworkers Signup and view all the answers

What impact does telework have on employee overhead for companies?

It reduces overhead costs for companies Signup and view all the answers

What is a commonly cited argument in favor of globalization?

Increases job opportunities in poorer countries Signup and view all the answers

What does Robert Reich imply about the financial dynamics in the gig economy?

Corporations benefit disproportionately from gig work profits Signup and view all the answers

What is one significant disadvantage of multinational teams?

Inadequate local infrastructure Signup and view all the answers

Which statement reflects an argument against globalization?

It can undermine national economies. Signup and view all the answers

What was a consequence of the dot-com bust in the early 2000s?

Significant job losses in the high-tech sector Signup and view all the answers

What distinguishes globalization from earlier business practices?

A broader geographical scope Signup and view all the answers

Which argument is often cited against globalization concerning employment?

It forces local workers to compete against lower-paid labor. Signup and view all the answers

What nearly eliminated barriers to global trade and business in the late 20th century?

Rapid advances in information technology Signup and view all the answers

What impact does globalization typically have on competition?

Encourages improved efficiency and innovation Signup and view all the answers

Study Notes

Chapter 10: Work and Wealth

Chapter focuses on the impact of information technology and automation on work and wealth.
Learning Objectives cover topics including introduction, automation and employment, workplace changes, globalization, the digital divide, and the "winner-take-all society".
Information technology and automation affect the workplace in several ways, impacting productivity, job creation and destruction, globalization of the job market, company organization, and telework.
Workplace monitoring is also a significant element.
Information technology impacts society with resulting digital divides and winner-take-all effects.
Automation and Job Destruction: Between 1979 and 2011, the U.S. population increased by 39%, while manufacturing employment dropped by 40%, from 19.4 million jobs to 11.7 million jobs. White-collar jobs like secretarial, clerical, accounting, and middle management roles have also been lost. The work week, according to Juliet Schor, got longer between 1979 and 1990.
Examples of lost jobs include General Motors' bankruptcy in 2009, which resulted in a 30% reduction in employees.
Automation and Job Creation: Automation lowers prices, increasing demand for products, which in turn increases real incomes and the need for other products, leading to job creation. The number of manufacturing jobs worldwide is increasing. Martin Carnoy noted that workers today work less than workers did 100 years ago.
Automation's effects include reduction in product prices, an increase in demand for those and other products, and the creation of new jobs.
Increased productivity led to higher standards of living compared to medieval and ancient times. Low caloric intake historically led to slower work paces, seasonal and intermittent work patterns, and resistance to labor if adequate funds were available. Wages, historically, inversely correlated with work hours.
Case Study: The Canceled Vacation—Stuart, a software developer, faces a conflict between personal needs (vacation) and company expectations (important product update). His supervisor asks him to delay his vacation, offering him three weeks of vacation the following year. Stuart’s decision was based on factors of duration, certainty, propinquity and purity, Ultimately Stuart cancelled a trip to San Diego to prioritize work which could be considered a loss.
Kantian/Social Contract Theory Evaluation: Stuart is judged as not having broken promises, deceived anyone, or otherwise acted wrongly in delaying the trip, as he was not obligated to visit his parents prior to their move. (Kantian and social contract theorists would argue that Stuart acted correctly.)
Act Utilitarian Evaluation: Stuart’s decision and its impact are analyzed based on duration (vacation alternatives), certainty, propinquity (time for impact), and purity (moral consequences of each action). The analysis suggests that the trip to Australia is the better option overall.
Virtue Ethics Evaluation: Stuart's decision to prioritize work over visiting his parents is seen as lacking in courage and consideration for himself, coworkers, and parents. This is viewed as a negative aspect of prioritizing work over family or personal time.
Rise of the Robots?: Experts suggest that most jobs will be taken over by machines in the future. Artificial intelligence (AI) is a focus of computer science, concentrating on intelligent behaviors in machines. Rapid advancements in microprocessor speeds have driven AI progress, but the effects of continued increases in speed is uncertain.
Noted achievements in AI since 1995: Computer-controlled vehicles, IBM's Deep Blue defeating a chess champion, Honda's ASIMO android, robotic vacuum cleaners, and autonomous vehicles are all noted milestones in AI. Watson (IBM supercomputer) trounced the Jeopardy! champs and Google’s self-driving cars. AlphaGo program, beat a world’s #1 Go player.
Moral questions related to robotics include: is it wrong to create machines making human labor obsolete? Would intelligent robots demoralize humanity? Is it wrong to work on intelligent machines if they cannot be guaranteed to be benevolent to humans? What if a malevolent human uses intelligent machines for evil uses? How would creative computers change ideas about intellectual property? How does superfast computation impact ideas on privacy related to digital records?
Workplace Changes: Information technology is integrated by automating back-office functions (e.g., payroll), improving manufacturing, and enhancing communication.
Organizational changes result in flattened structures and elimination of transactional middlemen (supply-chain automation).
Inexpensive interaction leads to flexible information flow. Organizations become flatter and more dynamic.
Winners and Losers in the Workplace of the Future: The greater use of information technology in the workplace has increased demand for employees in certain job categories (e.g., software engineers, computer support, network analysts, and other technical professionals) while reducing demand for others (e.g., butchers, secretaries, payroll clerks . The list of "winners" and "losers" was provided.
Telework: Employees work away from the traditional workplace. Examples include home office, commuting to a telecenter, and sales roles without a fixed office space. Telework is used by roughly 37% of Americans. Advantages include increased productivity, lower absenteeism, improved morale, retention of employees, cost savings, and resilience. Disadvantages include threats on managers' control, impacting customer meetings (lack of face-to-face interaction), reduced security and privacy, issues with team cohesion and visibility of teleworkers.
The Gig Economy: Includes companies (e.g., Uber, Lyft, Instacart, Airbnb) connecting those wanting a service with service providers. Gig workers are often subcontractors, with potential benefits in terms of flexibility for workers, but also concerns about compensation and job security.
Proponents say the gig economy grants workers independence and flexibility. Critics point to potentially last-resort jobs where competition among workers negatively affects wages.
Monitoring: Monitoring of employee Internet usage, video surveillance, and monitoring of keyboard, phone and email activity are practiced by companies to detect inappropriate usage of resources and possibly illegal activities.
Monitoring may be used to assess productivity and improve workplace security, but also may reduce job satisfaction.
Multinational Teams: Software development teams in countries like India have been using these models since the 1980s. A benefit is continuous work and cost savings. A disadvantage includes infrastructure issues in some of these countries.
Globalization: Globalization networks businesses and markets; creating a greater mobility of goods, services, and capital worldwide. This global phenomenon is possible today through the continually decreasing costs in information technology costs.
The Argument for Globalization: Globalization boosts competition, gives jobs in poorer countries, and can lead to national growth. Conversely, globalization can negatively impact American workers and jobs. Some examples are the loss of jobs to other countries and the underpayment of workers in foreign countries.
Dot-Com Bust Increased IT sector Unemployment: Internet-related start-up companies saw stock prices plummet in the early 2000s; leading to bankruptcy and job loss for hundreds of companies – losing half a million high-tech jobs.
Foreign Workers in the US IT Industry: Visas allow foreigners to work in the U.S. (e.g., H-1B, L-1), with various limits on visas. Foreign competition negatively impacts workers and availability of specific roles within the US.
Foreign Competition: China is the world's leading producer of computer hardware and IT outsourcing to India is increasing. India has an increasing number of college students, and there is a rise in global competition for skilled roles.
The Digital Divide: A key concept is the distinction between those who access modern information technologies and those who lack access, with poorer nations often struggling to access modern computing. This division is largely based on poverty, infrastructure, and literacy.
Technological Diffusion Models: Diffusion is the speed at which new technologies are adopted. The Normalization model shows that all groups eventually adopt the technology. The Stratification model shows that the richest groups adopt the technology first, and lower socio-economic groups later or not at all, or possibly only in less necessary roles within the company.
Technological Optimist v. Pessimists: Global diffusion of Information Technologies is viewed by optimists as creating job opportunities and reducing poverty, while pessimists believe existing inequalities worsen. The optimist’s view focuses on the normalization model whereas pessimists focus on the stratification model where differences in availability and adoption of technology grow.
Critiques of Digital Divide: The term may be misleading or inaccurate in describing the actual differences in accessing and using technology. It may promote a false idea that differences are solely a factor of access, failing to fully account for numerous other systemic issues. The Internet is but one tool available in a rapidly developing field.
Massive Open Online Courses (MOOCs): The rise of MOOCs has raised concerns that they widen existing educational gaps. This occurs due to differing levels of access, skill and background of the students who participate in the courses. Tuition costs at universities have risen much faster than inflation. This makes financing education for poorer families a much greater burden.
Net Neutrality: Tiered service structures charge more for high priority Internet packet routing. Opponents say this would hurt smaller companies and impede innovation. Net neutrality legislation would require all Internet packets to be treated the same. Opponents of this suggest that people should be able to pay different rates based on the needs of the services they use. Legislative actions over net neutrality have evolved throughout the years.
The “Winner-Take-All” Society: Winner-take-all markets allocate a disproportionate share of wealth to a small number of top performers. The causes for this phenomenon include factors such as IT, efficient transportation systems, network effects, and changing business norms. CEOs earn far more than average workers. It would seem to be an appropriate factor to consider.
Reducing Winner-Take-All Effects: Potential solutions include limiting store hours, cooperative agreements to reduce positional arms races (e.g., salary caps), more progressive tax structures, and campaign finance reform.

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This quiz explores Chapter 10, focusing on how information technology and automation influence work and wealth. Topics include employment changes, workplace monitoring, globalization, and the winner-take-all society. Understand the implications of these trends on job creation and destruction, along with the resulting societal effects.