Economic Concepts and Theories Overview

Questions and Answers

Which of the following best defines the term commodity?

An economic system which adheres to the principles of socialism

An activity that benefits people, such as health care, education, and entertainment

A physical object we find, grow, or make to meet our needs and those of others (correct)

A benefit given to those who participate in the capitalist market

Which of the following is an example of structural unemployment?

Though many companies are hiring in Washington D.C., unemployment is high in Tennessee (correct)

John quits his job after getting accepted into law school

A large fire burns down an automotive plant in Detroit, forcing the employees temporarily out of work

Three sales associates from Target are fired after stealing merchandise from the electronics department

During what time period did economies begin to develop globally?

The post industrial revolution

The industrial revolution (correct)

The agricultural revolution

The information age

What are Terrence and his family engaging in?

Subsistence farming Signup and view all the answers

Which of the following is an example of polarization?

The job market is increasing in the lowest economic levels and is increasing in the highest economic levels Signup and view all the answers

Which statement about Occupy Wall Street would most align with Jin's sociological perspective?

Occupy Wall Street is positive; our capitalist economy is only making social inequality grow larger Signup and view all the answers

What does the term xenophobia mean?

An illogical fear and even hatred of foreigners and foreign goods Signup and view all the answers

What is Davis engaging in?

Bartering Signup and view all the answers

By 2009, America was in the midst of a?

Recession Signup and view all the answers

Which of the following best defines the term globalization?

The process of integrating governments, cultures, and financial markets through international trade into a single world market Signup and view all the answers

What was the significance of NAFTA?

It allowed freer trade opportunities for the United States, Canada, and Mexico Signup and view all the answers

Apple computers shipping their computer parts to India to be made is an example of a?

Global commodity chain Signup and view all the answers

What is Keshawn's experience an example of?

Outsourcing Signup and view all the answers

Which of the following best defines the term mercantilism?

An economic policy based on national policies of accumulating silver and gold by controlling markets with colonies and other countries through taxes and custom charges Signup and view all the answers

Which of the following is not an example of underemployment?

After his wife gave birth to twins, Jerry quit his job to help raise them Signup and view all the answers

What kind of economy is Alex living in?

Market socialist Signup and view all the answers

What is one reason unemployment statistics are unreliable?

The statistics include only those who are currently looking for work Signup and view all the answers

Which of the following industries is not projected to experience growth within the United States within the next 10 years?

Farming, Fishing, and Forestry Signup and view all the answers

Emile Durkheim described mechanical solidarity as?

A form of social cohesion that comes from sharing similar work, education, and religion, as might be found in simpler societies Signup and view all the answers

Which of the following is an example of convergence theory in action?

Germany rebuilt its economy after World War II, creating more job opportunities and prosperity for its citizens Signup and view all the answers

Study Notes

Commodity Definition

A commodity is a physical object that is found, grown, or made to fulfill needs.
Other definitions include activities that provide benefits (e.g., healthcare) and economic systems like socialism.

Structural Unemployment Example

Structural unemployment occurs when there are job vacancies in one region but high unemployment in another, even with hiring in certain areas.

Global Economic Development

Economies began to develop globally during the industrial revolution, marking a shift in economic practices.

Subsistence Farming

Subsistence farming is characterized by producing just enough food for family consumption and covering taxes, as in Terrence's case in Chile.

Economic Polarization

Economic polarization refers to a growing divide where job availability increases only at low and high economic levels, leaving the middle class affected.

Conflict Theory Perspective

A conflict theorist like Jin would view Occupy Wall Street as a valid response to the increasing social inequality driven by capitalism.

Xenophobia Definition

Xenophobia is defined as an irrational fear or hatred of foreigners and foreign goods.

Bartering Explained

Bartering involves trading goods directly; Davis trading his acoustic guitar for an electric guitar is a classic example.

Economic Recession Context

By 2009, America experienced several quarters of decline, indicating a recession.

Globalization Process

Globalization is defined by the integration of governments, cultures, and financial markets, leading to a single world market through international trade.

NAFTA Significance

NAFTA facilitated freer trade among the U.S., Canada, and Mexico, impacting economic relations.

Example of Global Assembly Line

Apple’s distribution model, where computer parts are shipped to India for assembly, exemplifies a global commodity chain.

Outsourcing Impact

Outsourcing refers to relocating jobs to lower-cost regions, as illustrated by Keshawn losing his IT job in favor of workers in New Delhi.

Mercantilism Definition

Mercantilism is an economic policy focused on accumulating wealth by controlling markets through taxation and colonialism.

Underemployment Clarification

Underemployment results when individuals work in positions below their skill level or part-time when seeking full-time roles.

Market Economy Classification

A market socialist economy incorporates limited private ownership while allowing market forces to influence production decisions.

Unemployment Statistics Reliability

Unemployment statistics may be unreliable because they only count those actively seeking work, missing broader employment issues.

Non-Growth Industries

The farming, fishing, and forestry sectors are not projected to see growth in the U.S. within the next decade.

Mechanical Solidarity Concept

Mechanical solidarity refers to social cohesion derived from shared experiences and similarities in work, education, and religion.

Convergence Theory Application

Convergence theory is illustrated by Germany’s post-WWII economic recovery, which resulted in job creation and prosperity.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore key economic concepts and theories, including commodity definitions, structural unemployment, and subsistence farming. This quiz also covers global economic development and the impact of economic polarization, providing a comprehensive overview of contemporary economic issues.