Economics Chapter 9 Quiz

Questions and Answers

After the collapse of the housing market, many people could not afford their mortgages anymore and their homes went into foreclosure. For many people, it was a time of __________.

downward mobility

What is the most significant threat to the relatively high standard of living people are accustomed to in the United States?

the decline of the middle class

What is the term for purchasing that is done to show off wealth?

conspicuous consumption

What determines a person's position in a country's social stratification?

wealth, power, income, race, education Signup and view all the answers

Symbolic interactionists believe that most people socialize with those from different social classes.

False Signup and view all the answers

Cate and Harry are planning a wedding. They will have a(n) __________ marriage.

exogamous Signup and view all the answers

How is the upper class defined in contrast to the upper-middle class?

the upper class is often defined as having control over one's life and the lives of people around you, while the upper-middle class is defined as having control only over one's own life. Signup and view all the answers

What seems to be the key to upward social mobility?

how much education you have Signup and view all the answers

What does the Davis-Moore Thesis state?

that the more society values a particular profession, the more the people in that profession will make. Signup and view all the answers

What system is Mohit living under if he accepts his lower-class status?

a caste system Signup and view all the answers

Which factors are considered when evaluating someone's standard of living?

all of the above (education, wealth, class) Signup and view all the answers

Study Notes

Recession and Its Effects

In 2008, the U.S. recession impacted global economies, leading to widespread job losses and reduced consumer spending.
Many individuals faced foreclosure due to inability to afford mortgages, illustrating a trend of downward mobility.

Threats to Living Standards

The decline of the middle class poses a significant threat to the high standard of living in the United States.

Consumer Behavior

Conspicuous consumption describes the act of purchasing high-cost luxury items, such as a $5,000 designer purse, to gain social status.

A person's social stratification is influenced by factors including wealth, power, income, race, and education.

Symbolic interactionists observe that socialization predominantly occurs within one's social class, highlighting class-specific social networks.

Marriage and Class

Exogamous marriages occur when individuals from different social classes marry, exemplified by the union of a Senator's daughter with someone from a working-class background.

Class Distinctions

Upper class is characterized by control over life and others, while upper-middle class reflects control primarily over one's own circumstances.

Upward Mobility

Education is a key factor in determining upward social mobility, significantly influencing an individual's potential to advance socially.

Davis-Moore Thesis

This sociological theory posits that societal value placed on a profession correlates with the compensation received by individuals in that field.

Caste System

Mohit’s situation in Mumbai exemplifies life under a caste system, where social mobility is limited, and acceptance of one’s class status is common.

Evaluating Standard of Living

Factors such as education, wealth, and class collectively evaluate an individual's standard of living, underscoring the complexity of social status.

Description

Test your knowledge on key concepts from Chapter 9 of economics. This quiz covers the impact of the 2008 recession and the related socioeconomic factors. Challenge yourself with flashcards that address downward mobility and other significant economic threats.