Economics Chapter 12 Flashcards
55 Questions
100 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

When people are differentiated in terms of their aesthetic and intellectual preferences, a ________ is being applied.

  • Social cluster
  • Consumption constellation
  • Taste culture (correct)
  • Culture code designation

    • According to Pierre Bourdieu, people's taste regarding entertainment and the arts serves as a status-making force or ________ that causes consumption preferences to cluster together.

  • Hierarchy
  • Habitus (correct)
  • Chav
  • Code

    • When a Rolls-Royce, a Cartier diamond, and an Andy Warhol painting are bought and displayed as markers of social class, they are ________.

  • Social parameters
  • Social inhibitors
  • Psychological blocks
  • Status symbols (correct)

    • Of the countries listed below, which is thought to be highly status-conscious?

    <p>Japan</p> Signup and view all the answers

    If a member of the upper class wore shredded Levi's jeans to a formal party, the person would be exhibiting a sophisticated form of conspicuous consumption known as ________.

    <p>Parody display</p> Signup and view all the answers

    What type of capital was Evan lacking when his hostile takeover bid failed?

    <p>Cultural</p> Signup and view all the answers

    Harry's extravagant birthday party is a good example of ________.

    <p>Conspicuous consumption</p> Signup and view all the answers

    What concept assesses the impact of inconsistencies in identity?

    <p>Status crystallization</p> Signup and view all the answers

    According to the principle of ________, Julia could be attracted to both Vance and Jeff.

    <p>Homogamy</p> Signup and view all the answers

    Which response best supports Jason's approach to finding social class categories?

    <p>American consumers generally have little difficulty accurately placing themselves in the lower-middle class or middle class.</p> Signup and view all the answers

    What modern American ceremony would come closest in intent to a Native American potlatch?

    <p>A marriage</p> Signup and view all the answers

    The prestige of occupations varies dramatically from one culture to the next.

    <p>False</p> Signup and view all the answers

    Lower-class men are more likely than middle-class men to have a general sense of empowerment.

    <p>False</p> Signup and view all the answers

    The American rich often indulge in luxury goods while pinching pennies on everyday items.

    <p>True</p> Signup and view all the answers

    Of the three groups of attitudes toward luxury, the largest group is 'luxury is indulgence'; this view is held mainly by wealthy senior citizens.

    <p>False</p> Signup and view all the answers

    Social capital refers to an individual's knowledge of the 'right' behavior used in the realm of the upper class.

    <p>False</p> Signup and view all the answers

    The flamboyant consumption of the nouveau riche is an example of symbolic self-completion.

    <p>True</p> Signup and view all the answers

    Tian Zhao, who has educated himself and gained material possessions, is a member of the mass class.

    <p>True</p> Signup and view all the answers

    Many twenty-somethings have rebelled against their more affluent parents by mocking wealth, wearing clothing such as shredded jeans and driving boxy cars.

    <p>False</p> Signup and view all the answers

    Restricted codes focus on the content of objects, not on relationships among objects.

    <p>True</p> Signup and view all the answers

    A sophisticated form of conspicuous consumption is called parody display.

    <p>True</p> Signup and view all the answers

    Describe Allison's attitude about luxury and how she spends her money.

    <p>These consumers use their money to buy things that will last and have enduring value. They conduct extensive pre-purchase research and make logical decisions rather than emotional or impulsive choices.</p> Signup and view all the answers

    Why is wearing a baseball cap backward a type of parody display?

    <p>A parody display is a method of seeking status by avoiding it. Wearing the cap backward minimizes its functional purpose, implying a high status.</p> Signup and view all the answers

    Defend the point of view that income is unnecessary when measuring social class.

    <p>Social class has two major components: occupation prestige and income. Income by itself is not a good predictor of social class and can be seen as a result of occupation and education.</p> Signup and view all the answers

    How does the worldview difference in social class help explain why working-class families typically spend their lives close to where they were raised?

    <p>Working-class individuals depend heavily on relatives for emotional support and orient themselves around the local community.</p> Signup and view all the answers

    Explain what Veblen meant by the term 'invidious distinction.'

    <p>Invidious distinction refers to consumers purchasing items to inspire envy in others through displays of wealth and power.</p> Signup and view all the answers

    Explain the difference between restricted codes and elaborated codes.

    <p>Restricted codes focus on the content of objects, while elaborated codes are more complex and depend on a more sophisticated worldview.</p> Signup and view all the answers

    The average American's standard of living continues to improve. These income shifts are linked to two key factors: What are these factors?

    <p>A shift in women's roles and an increase in educational attainment</p> Signup and view all the answers

    Money available to a household over and above what is required to have a comfortable standard of living is called ________.

    <p>Discretionary income</p> Signup and view all the answers

    Consumers who buy everything in sight are called ________.

    <p>Spendthrifts</p> Signup and view all the answers

    Fred Johnson's fear of being ruined is equated to ________.

    <p>Atephobia</p> Signup and view all the answers

    A ________ is an economy that is driven by a fairly small group of rich people.

    <p>Plutonomy</p> Signup and view all the answers

    The best predictor of major expenditures that do not have status or symbolic value is ________.

    <p>Social class and income</p> Signup and view all the answers

    One percenters are an example of ________.

    <p>Income inequality</p> Signup and view all the answers

    Which of the following is NOT listed as a determiner of how much a person will save?

    <p>The relationship between the lending prime rate and growth rates</p> Signup and view all the answers

    _____ refers to the passage of individuals from one social class to another.

    <p>Social Mobility</p> Signup and view all the answers

    Consumers who refuse to sacrifice style but achieve it on a budget are called ________.

    <p>Frugalistas</p> Signup and view all the answers

    ________ measures how optimistic or pessimistic people are about the future health of the economy.

    <p>Consumer confidence</p> Signup and view all the answers

    Blue-collar workers with relatively high-prestige jobs consider themselves as ________.

    <p>Working class lower middle</p> Signup and view all the answers

    Although teenagers do not have the income of older consumers, they are still an attractive market based on income. Why?

    <p>Teenagers don't have the income of adults, but it's almost all discretionary, meaning that they can spend it as they see fit.</p> Signup and view all the answers

    Mothers with preschool children are the fastest-growing segment of working people.

    <p>True</p> Signup and view all the answers

    A consumer's belief about what the future holds is an indicator of consumer confidence.

    <p>True</p> Signup and view all the answers

    Education is one determining factor in future income.

    <p>True</p> Signup and view all the answers

    Discretionary income is the money available to a household over and above that required for a comfortable standard of living.

    <p>True</p> Signup and view all the answers

    American spendthrifts outnumber American tightwads.

    <p>False</p> Signup and view all the answers

    An economy that is driven by a fairly small number of rich people is called a plutonomy.

    <p>True</p> Signup and view all the answers

    Social stratification refers to the creation of artificial divisions in a society.

    <p>True</p> Signup and view all the answers

    The wealthiest 160,000 U.S. families are considered one percenters.

    <p>True</p> Signup and view all the answers

    Downward mobility is not possible in the U.S. social class system.

    <p>False</p> Signup and view all the answers

    What are the two major components of social class? Explain and comment on each component.

    <ol> <li>Occupational prestige: a way to evaluate the 'worth' of people; it's strongly linked to other variables. 2. Income: income is often not a good indicator; how it is spent is revealing.</li> </ol> Signup and view all the answers

    What is a credit score?

    <p>A credit score is based on a person's outstanding debt and payment history, determining loan qualification.</p> Signup and view all the answers

    List the 6 social classes.

    <ol> <li>Upper-upper, 2. Lower-upper, 3. Upper-middle, 4. Lower-middle, 5. Upper-lower, 6. Lower-lower.</li> </ol> Signup and view all the answers

    John Jones purchases products to show visible evidence of his ability to afford luxury goods, John is practicing ________.

    <p>Conspicuous consumption</p> Signup and view all the answers

    A member of ________ has recently gained personal wealth and may experience status anxiety.

    <p>The nouveau riche</p> Signup and view all the answers

    How does the knowledge that lower classes use more restrictive codes than upper classes change how insurance might be sold?

    <p>The promotion to the working-class man should emphasize his immediate satisfaction.</p> Signup and view all the answers

    Study Notes

    • The average American's rising standard of living is linked to a shift in women's roles and increased educational attainment.
    • Women, especially mothers with preschool children, are increasingly entering high-paying occupations, contributing significantly to family income.
    • College graduates earn approximately 50% more than individuals with only a high school education, highlighting the importance of education.

    Income and Consumer Behavior

    • Discretionary income refers to money available for spending beyond basic living expenses, promoting consumer spending.
    • Spendthrifts are consumers who frequently make impulsive purchases without regard for budgeting.
    • Consumer confidence reflects optimism or pessimism about the economy's future health and influences consumer behavior.

    Social Class and Mobility

    • Social mobility is the ability to move between different social classes, which can be upward, downward, or horizontal.
    • One percenters exemplify income inequality, representing the wealthiest segment of the population.
    • Homogamy describes the tendency to marry within similar social classes, illustrating social stratification.

    Consumer Segmentation

    • Frugalistas are consumers who seek stylish options while being budget-conscious.
    • Mass class consumers, with significant purchasing power, tend to buy quality yet affordable goods, often influenced by cultural practices.
    • Taste culture refers to consumers defined by their aesthetic and intellectual preferences, impacting their purchasing behaviors.

    Psychological Aspects and Consumption

    • Affluenza describes the stress and unhappiness that can accompany wealth, often derived from societal pressures.
    • Status symbols, such as luxury items, serve as markers of social class and reflect an individual's social standing.
    • Classical sociologist Karl Marx emphasized the relationship to production as a determinant of social class position.

    Societal Changes and Globalization

    • Changes in society are prompting a reevaluation of class-based consumption patterns, with increasing emphasis on frugality in recent recessions.
    • Occupation is a more stable indicator of social class compared to income, as it correlates with various lifestyle factors.

    Key Definitions for Study

    • Consumer confidence: Measurement of optimism about the economy's future.
    • Plutonomy: Economy dominated by a small number of wealthy individuals.
    • Credit score: Evaluation based on credit history affecting loan qualifications.
    • Horizontal mobility: Career changes within the same social class without a change in income status.
    • Teenagers, despite limited income, possess discretionary spending habits, influencing their attractiveness to marketers.
    • Mothers with preschool children represent a growing demographic in the workforce, impacting consumer patterns and economic contributions.
    • Downward mobility occurs when individuals fall into a lower social class due to economic changes.

    Important Concepts

    • Hedonic adaptation refers to maintaining a stable level of happiness despite changing circumstances, impacting consumer satisfaction.
    • Bourdieu's concept of habitus illustrates how taste and preferences can define social class and influence consumption patterns.

    Consumer Cultures and Distinctions

    • Co-branding shows collaboration between brands, such as Taco Bell and Geico, enhancing mutual marketing strategies.
    • Cultural capital, acquired through education and socialization, influences an individual's ability to navigate different social realms effectively.### Conspicuous Consumption
    • Defined as the lavish spending on goods and services acquired for the purpose of displaying wealth and social status.
    • Example: Harry’s extravagant birthday party for two hundred friends, featuring chartered jets and nightly bungalow rebuilds.

    Status Crystallization

    • Concept examining the inconsistencies between an individual's social identity and their achieved status.
    • Trisha’s journey from a disadvantaged background to a medical doctor reflects her struggle with identity despite her accomplishments.

    Homogamy

    • Refers to the tendency of individuals to form relationships with those of similar social status.
    • Vance and Jeff’s attraction to Julia illustrates the principle, as her beauty and status attract both men from similar class backgrounds.

    Social Class Self-Identification

    • American consumers can generally self-identify their social class effectively, particularly between lower-middle and middle classes.

    Modern Ceremonies vs. Native American Potlatch

    • Marriage ceremonies in contemporary America parallel the intent of Native American potlatch, where social status and community ties are emphasized.

    Occupational Prestige

    • Varies significantly across cultures; no universal ranking exists, indicating cultural relativity in value placed on occupations.

    Lower vs. Middle Class Empowerment

    • Lower-class men actually experience less of a general sense of empowerment compared to their middle-class counterparts.

    Consumer Behavior of the American Rich

    • Frequently indulge in luxury items while being frugal with everyday purchases, reflecting complex consumer behaviors and values.

    Luxury Attitudes

    • Majority view among wealth groups is not "luxury is indulgence"; this view is particularly prevalent among younger demographics, not exclusively seniors.

    Social Capital Misconception

    • Social capital is often incorrectly defined in narrow terms, overlooking its broader implications in social interactions and networks.

    Nouveau Riche Consumption

    • Characterized by flamboyant displays, reflecting a form of symbolic self-completion as these individuals seek validation through material possessions.

    Mass Class Membership

    • Mass class embodies individuals like Tian Zhao, integrating modern consumer products into their lifestyle, signifying socio-economic progression.

    Modern Fashion Statements

    • Wearing shredded jeans or unconventional styles by younger generations is not indicative of a modern potlatch; rather, it reflects rebellion against traditional wealth expressions.

    Restricted vs. Elaborated Codes

    • Restricted codes focus on tangible object content without context; elaborated codes encompass deeper relationships among objects and require more sophisticated understanding.

    Parody Display in Fashion

    • Wearing items like baseball caps backward exemplifies parody display, minimizing function to emphasize status, suggesting social superiority over traditional use.

    Measuring Social Class

    • Income alone is not a sufficient indicator of social class; it is influenced by occupation and education, and their interrelation is crucial for marketing strategies.

    Working-Class Familial Ties

    • Children of working-class families typically remain close to their roots, emphasizing the importance of local community and familial support over larger ambitions.

    Invidious Distinction

    • A concept by Veblen focused on the idea that wealth and power are displayed through conspicuous purchases that provoke envy amongst others.

    Studying That Suits You

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

    Quiz Team

    Description

    Test your knowledge with these flashcards covering key concepts from Chapter 12 of your economics textbook. These flashcards focus on important factors influencing the standard of living, employment shifts, and educational attainment in America.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser