This Document Contains Chapters 1 to 6 INTRODUCTION TO PART 1 TRUE OR FALSE QUESTIONS 1. The relations between capitalists, laborers, and consumers, are tied together by the pursuit of money. Answer: True 2. The culture of capitalism is best thought of as the interactions among consumers, laborers, capitalists and the nation-state tied together by the pursuit of money. Answer: True 3. Money is best conceptualized as simply a standardized means of exchange. Answer: False 4. GDP is a measure of the value of all goods and services produced and sold over a given period of time. Answer: True 5. Credit money requires backing by some commodity of recognizable value. Answer: False 6. The U.S. Federal Reserve was created to limit control and stabilize the money supply. Answer: True MULTIPLE CHOICE QUESTIONS 1. Commodity or fiat money is __________. a. backed by nothing more than the guarantee of the state b. backed by the promise of banks to exchange it for gold c. a kind of money first used by the indigenous peoples of Oceania d. refers only to money contained in checking accounts Answer: a 2. Bills and coins make up about __________. a. 50-60% of the total money supply b. 5-10% of the total money supply c. 100% of the money supply d. 15-20% of the money supply Answer: b SHORT ANSWER OR ESSAY QUESTIONS 1. How has money functioned to maintain perpetual economic growth? Answer: Money has played a crucial role in maintaining perpetual economic growth through several mechanisms: 1. Investment and Capital Formation: Money allows for investment in new technologies, infrastructure, and businesses, fostering economic expansion and productivity gains. 2. Consumption and Demand: Money facilitates consumption by individuals and businesses, driving demand for goods and services, which in turn stimulates production and economic activity. 3. Credit and Debt: Money enables credit creation, allowing businesses and individuals to borrow for investment and consumption purposes, thereby fueling economic growth. 4. Monetary Policy: Central banks use money supply and interest rates to manage economic growth, ensuring adequate liquidity and promoting stable economic conditions conducive to growth. 5. Innovation and Entrepreneurship: Money supports innovation and entrepreneurship by providing funding for research, development, and new ventures, which are essential for long-term economic expansion. Overall, money acts as a lubricant for economic transactions and development, essential for achieving and sustaining perpetual economic growth. 2. What is the difference between commodity money and fiat money, and why is the distinction important? Answer: Commodity money is backed by a tangible commodity with intrinsic value, like gold or silver, whereas fiat money has no intrinsic value and derives its value solely from government regulation and faith in the issuing authority. The distinction is crucial because commodity money has inherent value, limiting inflation risks, while fiat money's value can be more easily influenced by economic policies and confidence in the issuing government or institution. Understanding this difference helps in assessing the stability and trustworthiness of a monetary system. 3. Discuss the reasons why credit money may be seen as a modern-day philosopher's stone. Answer: Credit money can be seen as a modern-day philosopher's stone because: 1. Multiplication of Wealth: It allows for the creation of wealth beyond existing tangible assets through lending and fractional reserve banking. 2. Facilitation of Growth: Enables economic expansion by funding investments, entrepreneurship, and consumption beyond current savings. 3. Flexibility and Convenience: Provides a flexible medium of exchange and facilitates transactions more efficiently than barter or commodity-based systems. 4. Monetary Policy Tool: Central banks use credit money to manage economic stability and stimulate growth through interest rate adjustments and liquidity management. 5. Global Trade and Integration: Supports international trade by serving as a universally accepted means of payment, enhancing globalization and economic interconnectedness. 4. How does the economy work to convert nonmonetary goods into goods and services that money can buy? Answer: The economy converts nonmonetary goods into goods and services that money can buy through the process of production, distribution, and consumption: 1. Production: Businesses and individuals transform raw materials and resources into finished goods and services through manufacturing, agriculture, and other production processes. 2. Distribution: Goods and services are distributed to markets and consumers through transportation, logistics, and retail networks. 3. Consumption: Consumers purchase goods and services using money earned from selling labor or assets, thereby completing the cycle by creating demand for further production. Money acts as a medium of exchange that facilitates transactions throughout this process, allowing nonmonetary goods (like labor or raw materials) to be converted into goods and services that can be bought and sold in the market economy. CHAPTER 1: CONSTRUCTING THE CONSUMER TRUE OR FALSE QUESTIONS 1. In a capitalist culture, people have an innate drive to accumulate goods and it is this which drives them to work hard. Answer: False 2. Prior to the early twentieth century, the American culture emphasized frugality and people were expected to save their money, only buying necessities. Consumerism is a product of the twentieth century. Answer: True 3. The concept of "fashion" revolutionized marketing by creating a desire to replace owned goods with new goods because of a wish to be "up-to-date" rather than because of necessity or wear. Answer: True 4. In the culture of capitalism, the story of Santa Claus is an idealization of all facets of capitalism, depicting an idealist view of the consumer, the laborer and the capitalist as a happy coalition of benevolence. Answer: True 5. Children's literature has not been able to be used as an instrument to create the impulse to consume as children tend to look for moral lessons in their stories. Answer: False MULTIPLE CHOICE QUESTIONS 1. As part of a healing ceremony, Navajo sand painters created a representation of the universe in order to help the ill return to his/her proper place in the world. In capitalism, contemporary sand painters __________. a. are consumers who have been induced to purchase commodities by people such as advertisers, entertainers, marketing specialists and others in a capitalist culture b. are those in the society who create a consumer society in which buying commodities becomes the duty of the consumer c. express values through stories and chants associated with their cultural heritage in an attempt to restore harmony to the world d. are expressionist artists Answer: b 2. The foundation for the construction of the consumer was laid in the 1890's as a result of __________. a. urbanization which created a need to buy goods b. the movement of settlers into the Western territories creating a need for goods to take with them c. the evolution of the department store as a place to display goods d. the display of bulk goods Answer: c 3. An important feature in the creation of the consumer society helped to "mask the inequality, poverty, and labor conflict" which was occurring at the turn of the century. This feature was __________. a. the discounting of prices by means of weekly sales b. service, which made the consumer feel like a guest c. the development of chain stores which allowed all consumers access to such stores d. attention to detail Answer: b 4. Disney has created the ultimate Mecca of consumerism. The Disney kingdoms have rewritten history as "it should have been" and created fantasy lands where the imagination can soar. Disney __________. a. is a place designed for the entertainment of children b. separates the consumer from the negative side of capitalism c. is a universal attraction, designed for all people regardless of income d. separates money from profit Answer: b 5. India and China, the two most populous countries on earth __________. a. are rapidly being converted into consumer societies b. are still unable to supply their citizens with consumer goods c. are attempting to become consumer societies, but have economic growth rates well below the wealthy countries d. have consciously rejected the consumer model of economic growth Answer: a SHORT ANSWER OR ESSAY QUESTIONS 1. The culture of capitalism encourages the __________ to accumulate profit, the __________ to accumulate wages and the __________ to accumulate goods. Answer: entrepreneur worker consumer 2. What is meant by "the arousal of free-floating desire"? Answer: "The arousal of free-floating desire" refers to stimulating or creating desires in individuals that are not necessarily based on immediate needs or necessities but are influenced by external factors such as advertising, social pressures, or cultural norms. It implies the generation of desires that are not inherently grounded in practical or essential requirements but are rather shaped by broader influences in society. 3. In what ways did 1) educational and cultural institutions, 2) government agencies and 3) financial institutions of American society adapt their functions to promote consumption? Answer: 1. Educational and Cultural Institutions: • Emphasized consumerism in curriculum and socialization. • Promoted values of material success and consumption. • Developed marketing and business education programs. 2. Government Agencies: • Encouraged spending through policies promoting economic growth. • Supported consumer credit availability and homeownership. • Used advertising for war bonds during wars. 3. Financial Institutions: • Expanded consumer credit offerings (e.g., credit cards, mortgages). • Developed marketing strategies to encourage borrowing and spending. • Partnered with retailers to offer financing options. 4. Discuss the relationship between the story of the Wizard of Oz and consumerism. Answer: The story of the Wizard of Oz can be interpreted as a commentary on consumerism: 1. Symbolism of Characters: • Dorothy: Represents the innocent consumer, seeking fulfillment and happiness. • Scarecrow: Symbolizes farmers and agricultural workers, often exploited by financial interests. • Tin Man: Represents industrial workers, similarly exploited. • Cowardly Lion: Represents politicians or leaders who lack courage to confront economic challenges. 2. Journey as Allegory: • Dorothy's journey to Oz mirrors the search for fulfillment through material wealth. • The Emerald City symbolizes the allure of materialism and consumer culture. • The Wizard represents deceptive authority figures or economic powers. 3. Critique of Consumerism: • The Wizard's illusion of power reflects the empty promises of material wealth. • Characters discover they possess the qualities they sought externally (heart, brains, courage), suggesting inner fulfillment over material possessions. 4. Historical Context: • Written during a period of industrialization and economic change, parallels with societal shifts towards consumerism and urbanization. • Reflects concerns about the consequences of rapid economic development and its impact on individuals and society. In summary, the Wizard of Oz critiques consumerism by portraying a quest for fulfillment that ultimately finds value in inner qualities rather than material possessions or external validation. 5. What is meant by the term "kinder culture"? Answer: "Kinder culture" refers to the commercialization and commodification of childhood, where children's identities, desires, and behaviors are shaped and influenced by media, marketing, and consumer products targeted specifically at them. It encompasses the array of products, entertainment, and messages designed to appeal to and influence children as consumers from a young age. 6. Within a period of approximately thirty years, children's lives changed dramatically. They went from being workers to the pillars of the consumer economy. How did this change occur? Answer: Children's lives changed from being workers to pillars of the consumer economy due to the implementation of child labor laws, increased household incomes post-World War II, the rise of mass media and targeted advertising towards children, and the emergence of children as a distinct consumer demographic influenced by technological advancements in media. 7. What is some of the evidence that China and India are quickly adopting the culture of capitalism? Answer: Some evidence that China and India are quickly adopting the culture of capitalism includes: 1. Market Reforms: Both countries have implemented economic reforms that encourage private enterprise, foreign investment, and market competition. 2. Rapid Economic Growth: They have experienced significant GDP growth rates fueled by industrialization, urbanization, and technological advancements. 3. Consumerism: There is a growing middle class with increased purchasing power and consumption of goods and services. 4. Entrepreneurship: There is a rise in entrepreneurship and startup culture, supported by venture capital and innovation hubs. 5. Global Integration: Both countries are active participants in global trade and investment, contributing to a more market-oriented economy. These trends indicate a shift towards capitalist principles of private ownership, market mechanisms, and economic growth in both China and India. CHAPTER 2: THE LABORER IN THE CULTURE OF CAPITALISM TRUE OR FALSE QUESTIONS 1. The capitalist's view of money is similar to that of the Colombian peasant in that both views exhibit a belief that money has a life of its own. Answer: True 2. Migration became an important factor in the development of capitalism because it kept the cost of labor low. Answer: True 3. In the culture of capitalism, ethnic and racial groups were unified because they were all part of the laboring class. Answer: False 4. The theories of Karl Marx formed the basis for socialism and served as a blueprint for union organizers. Answer: True 5. Factories which have moved their assembly operations from core to peripheral countries have brought about the entrance into the labor market of young women because traditionally women in these countries work harder than men. Answer: False MULTIPLE CHOICE QUESTIONS 1. The laborer, a person who survives by selling his or her labor __________. a. has been the basis of all economies throughout history b. exists only in capitalist societies and plays no part in socialist societies c. is historically a recent phenomenon evolving from the growth of capitalism d. is no more than a shill in the capitalist system Answer: c 2. It is imperative to keep the cost of production as low as possible in order to maximize profits because __________. a. investors must receive a high return as an incentive to not take their money elsewhere b. enterprises must assure enough profit to reward laborers c. it allows them to create new markets in peripheral countries by paying workers higher wages which allow them to purchase the products they produce d. they can be used for necessary environmental cleanup Answer: a 3. The working class which emerged from the British economy was unlike any before it because __________. a. it received a fair share of the profits produced by their labor b. it was mobile, segmented by various characteristics, subject to discipline and militant c. it was made up of free men, unlike previous laborers who were serfs and slaves d. indentured servants were the earlier labor force Answer: b 4. The revolution which began in France in 1848 and spread into parts of Europe __________. a. was a struggle for power among European aristocrats b. was a religious struggle against birth control brought on by the writings of Malthus which blamed the high birth rate of the poor for poverty c. expressed conflict between the rich and the poor d. after the beheading of the ruling class Answer: c 5. The relocation of industries from core to peripheral countries usually occurs because __________. a. labor intensive industries can control the price of labor by exploiting the cheap labor available in peripheral countries b. wages paid to workers in the peripheral countries allow them to buy the products which they produce, thus creating new markets c. they cannot find enough workers in the core countries and are forced to look to the peripheral countries to provide labor to meet the demand for their products d. shipping costs have been reduced to a minimum in the last twenty years Answer: a SHORT ANSWER OR ESSAY QUESTIONS 1. What is meant by the terms "use value" and "exchange value"? Give examples of both. Answer: "Use value" refers to the inherent utility or usefulness of a good or service for satisfying human needs or desires. It is the practical benefit derived from consuming or using the item. For example, a bottle of water has use value because it satisfies thirst, and a smartphone has use value because it provides communication and access to information. "Exchange value" refers to the value of a good or service expressed in terms of another good or service, typically in a market transaction. It represents the amount of goods or services that can be acquired in exchange for the item. For example, the exchange value of a bottle of water might be $1, and the exchange value of a smartphone might be $500. In summary, use value pertains to the direct utility or benefit of a good or service, while exchange value relates to its worth in terms of what can be obtained in exchange for it in a market context. 2. The five major components of capitalism are commodities, money, labor power, means of production and production. Explain the relationship between these using a capitalist enterprise as an example. Answer: In a capitalist enterprise: 1. Commodities: These are goods or services produced for sale in the market. 2. Money: Acts as the medium of exchange, facilitating transactions and determining the value of commodities. 3. Labor Power: Workers provide labor in exchange for wages, which allows them to sustain themselves and participate in the market. 4. Means of Production: These include machinery, tools, and infrastructure used to produce commodities. 5. Production: Involves the process of transforming raw materials (inputs) into finished goods or services (outputs) for sale. Relationship: • The capitalist enterprise uses money to purchase means of production (machinery, tools) and raw materials. • Workers (labor power) are hired and compensated with wages to operate the means of production and produce commodities. • Production transforms raw materials into finished commodities. • These commodities are then sold in the market for money. • The enterprise aims to generate profit by selling commodities at a price higher than the costs of production (including wages and raw materials). This cycle of production, exchange (sale of commodities for money), and reinvestment of profits characterizes the relationship between commodities, money, labor power, means of production, and production within a capitalist enterprise. 3. What is meant by the hypothetical device called a "black box" in the culture of capitalism? What are some of the consequences of this system? Answer: In the culture of capitalism, a "black box" refers metaphorically to a process or mechanism that operates internally and is not transparent or fully understood by those outside of it. It represents complex systems or entities (such as financial institutions, algorithms, or organizational practices) where inputs and outputs are observable, but the inner workings are opaque. Consequences: 1. Lack of Transparency: It can lead to uncertainty and lack of accountability, as stakeholders may not fully comprehend the risks or decision-making processes involved. 2. Risk Accumulation: Complex financial instruments or algorithms within black boxes can magnify risks, potentially leading to financial instability or market volatility. 3. Inequality: The opacity of black boxes can perpetuate unequal power dynamics, benefiting those with access or understanding while disadvantaging others. 4. Regulatory Challenges: Regulators may struggle to oversee or regulate effectively due to the secretive nature of black box operations. 5. Ethical Concerns: Issues of fairness, privacy, and social consequences may arise when decisions affecting individuals or society are made within black boxes without transparency or ethical scrutiny. In essence, the concept of a black box in capitalism highlights the tension between efficiency, complexity, and the need for transparency and accountability in economic and organizational systems. 4. What is "commodity fetishism" and what purpose does it serve? Answer: "Commodity fetishism" refers to the phenomenon where the social relationships between people are obscured and replaced by relationships between commodities and their values in a capitalist society. It is the attribution of mystical or magical qualities to commodities, where they seem to possess inherent value and power beyond their material properties. Purpose: • It serves to obscure the labor and social relationships involved in the production and exchange of commodities. • By emphasizing the value and desirability of commodities, it perpetuates consumerism and encourages consumption. • It legitimizes capitalist economic relations by naturalizing the exchange of goods and services as the primary mode of social interaction and fulfillment. In essence, commodity fetishism helps maintain the capitalist economic system by masking the social and labor relations underpinning commodity production and exchange, thereby reinforcing the dominance of market-driven values and behaviors. 5. Discuss the concept of time and its relationship to the culture of capitalism. What effect does this have on society? Answer: In the culture of capitalism, time is commodified and becomes a valuable resource. This manifests in several ways: 1. Time as Money: Time is equated with money, where productivity and efficiency are emphasized to maximize profits and economic output. 2. Temporal Discipline: Workers are expected to adhere to strict schedules and deadlines to optimize labor efficiency and production. 3. Consumerism and Instant Gratification: There is a demand for instant access to goods and services, facilitated by technologies that save time and enhance convenience. 4. Globalization and 24/7 Economy: Markets operate across different time zones, leading to a globalized economy that functions continuously. Effects on Society: • Increased Stress: Pressure to manage time efficiently contributes to stress and burnout among individuals. • Social Relationships: Time constraints can affect interpersonal relationships and community engagement. • Environmental Impact: Pursuit of efficiency and consumption can lead to environmental degradation and resource depletion. • Inequality: Differential access to time-saving technologies and resources can widen disparities between social classes. Overall, the commodification of time in capitalism influences societal values, behaviors, and economic structures, shaping the way individuals interact with work, leisure, and consumption. 6. How are discipline and control used by managers to maintain a reliable source of labor? Answer: Managers use discipline and control in several ways to maintain a reliable source of labor: 1. Monitoring and Surveillance: Managers implement systems to monitor employee activities, such as time clocks, cameras, and computer tracking software. 2. Workplace Policies and Procedures: Establishing clear rules, standards, and procedures ensures consistency and predictability in employee behavior. 3. Performance Management: Setting goals, conducting regular performance reviews, and providing feedback help to ensure productivity and adherence to standards. 4. Incentives and Punishments: Rewarding good performance with incentives like bonuses or promotions, while disciplining poor performance or rule violations through warnings, reprimands, or even termination. 5. Training and Development: Investing in employee training and skill development ensures that workers have the necessary skills to perform their jobs effectively. These methods of discipline and control help managers to regulate and maintain a productive and reliable workforce, ensuring that employees meet organizational goals and contribute to the overall success of the business. CHAPTER 3: THE RISE AND FALL OF THE MERCHANT, INDUSTRIALIST, AND FINANCIER TRUE OR FALSE QUESTIONS 1. The seventeenth century was an era of mercantilism during which much wealth was sent abroad to expand the colonies and huge amounts of foreign goods were imported. Answer: False 2. It is thought that the industrial revolution took off in England because the wars had left the country with a shortage of laborers, making it necessary to find alternate methods of production. Answer: False 3. Colonialism and conflict weakened the European colonial powers and after WWI, the United States emerged as the leading economic power in which new types of factory organizations, the corporations, developed. Answer: True 4. Corporations, initially formed to limit the liability of the capitalist, drew the suspicion of some economists because of the vast power they had and their ability to manipulate the markets. Answer: True 5. African slavery was not a European invention, but was transformed by the export of slaves from Africa to the European colonies. Answer: True MULTIPLE CHOICE QUESTIONS 1. A global merchant setting out on a journey to trade in the early 1400's would probably have set his course for __________. a. Hispaniola b. South Africa c. China d. north Africa Answer: c 2. A trader leaving China with goods he had purchased for trade __________. a. would follow the sea route to Iran, cross land, then continue by sea to Italy b. would avoid the sea routes because of the danger from pirates c. would return to Europe by land, trading goods for gold on the return trip d. would return by sea due to time constraints Answer: a 3. Forming trading companies was the most profitable way to conduct trade in the 1700s because __________. a. they were private enterprises made up of members from many countries which gave them the ability to expand their trade globally b. they paid fewer taxes than independent traders c. they were given trade privileges and military protection by the state which chartered them d. they were strongly protected by the world’s great navies Answer: c 4. In 1873 a depression which was felt throughout the industrialized countries of the world showed that growth and expansion of capitalism could only continue __________. a. by forcing China to reopen trade with Europe and the Americas b. by building more efficient factories and decreasing the need for human labor c. by expanding into and colonizing previously untouched areas of the world d. with the plundering of the environment Answer: c 5. The rise in exports of such goods as coffee, cotton and sugar from the colonies __________. a. was a type of exploitation termed unequal exchange b. benefited the laborers in the colonies by providing employment c. allowed the economies of the colonized countries to develop and grow economically d. was called sugar diplomacy Answer: a SHORT ANSWER OR ESSAY QUESTIONS 1. What is meant by the term "capitalist" and what is his or her function in the culture of capitalism? Answer: A "capitalist" is an individual or entity that owns and invests capital (money, resources) in businesses with the expectation of generating profit. In the culture of capitalism, the function of the capitalist is to drive economic growth and innovation by allocating resources, creating jobs, and seeking efficient production methods to maximize returns on investment. This role supports the overall capitalist system, which is based on private ownership, free markets, and the pursuit of profit. 2. What made Italy the center of European and Mediterranean trade during the early ages of the development of capitalism? Why was it so important and how did it aid in the global expansion of trade? Answer: Italy became the center of European and Mediterranean trade during the early ages of capitalism due to its strategic location, which connected Europe with the Middle East and Asia. Italian city-states like Venice and Genoa developed advanced maritime and financial systems, enabling efficient trade. This central position allowed for the exchange of goods, ideas, and cultural influences, making Italy crucial for the flow of luxury items, spices, and innovations. This prominence in trade facilitated the growth of a merchant class, financial institutions, and economic practices that were instrumental in the global expansion of trade. 3. In the 1400's there were many barriers to commerce and trade. What types of barriers existed? What happened at the end of this period that led to the expansion of trade? Answer: In the 1400s, barriers to commerce and trade included political instability, piracy, restrictive local regulations, high tariffs, lack of standardized currencies, and limited navigational knowledge. At the end of this period, the Age of Exploration began, marked by advancements in navigation, shipbuilding, and the discovery of new trade routes. The rise of powerful nation-states and the establishment of overseas colonies further facilitated the expansion of global trade. 4. Eric Wolf referred to demographic changes in the New World as "the great dying". What did he mean by this and how is it related to the expansion of capitalism? Answer: Eric Wolf's term "the great dying" refers to the massive decline in indigenous populations in the New World due to diseases brought by European colonizers, along with warfare, enslavement, and harsh colonial policies. This demographic catastrophe is related to the expansion of capitalism as it enabled European powers to exploit vast new territories, access natural resources, and establish plantations and mines, thereby fueling the growth of capitalist economies through the influx of wealth and the expansion of global trade networks. 5. How did capitalists transform the culture of England to gain control of production during the industrial revolution? Answer: During the Industrial Revolution, capitalists transformed the culture of England by promoting industrialization and urbanization. They invested in factories, mechanized production, and new technologies, which shifted the economy from agrarian to industrial. Capitalists also influenced social and labor structures by creating a wage-based labor system, leading to the migration of workers to cities and altering traditional ways of life. This control over production facilitated increased efficiency, output, and profits, reinforcing capitalist economic dominance. 6. What action by the Supreme Court paved the way for the development of the culture of capitalism as we know it today? What was the result of this action? Answer: The Supreme Court action that paved the way for the development of the culture of capitalism was the ruling in the 1819 case Dartmouth College v. Woodward. The Court's decision upheld the sanctity of contracts and limited state interference in private business charters. The result of this action was the protection of corporate interests and the promotion of a stable business environment, fostering the growth of capitalism by encouraging investment and the expansion of private enterprises. 7. A review of the performance of the Bretton Woods Institution's performance since their inception was not favorable. Use examples to explain why they have been criticized. Answer: The Bretton Woods Institutions, namely the International Monetary Fund (IMF) and the World Bank, have been criticized for various reasons. Examples include: 1. Structural Adjustment Programs (SAPs): These programs often mandated austerity measures and economic reforms in developing countries, leading to reduced public spending on essential services like health and education, which exacerbated poverty and inequality. 2. Debt Crises: Critics argue that the IMF's lending practices have trapped countries in cycles of debt, with high interest rates and strict repayment terms hindering economic recovery and growth. 3. Imposition of Neoliberal Policies: Both institutions have been accused of promoting neoliberal policies that prioritize market liberalization, privatization, and deregulation, which sometimes resulted in social and economic instability in borrowing countries. 4. Lack of Accountability and Transparency: The decision-making processes of these institutions have been criticized for being dominated by wealthy nations, leading to policies that may not adequately reflect the needs and circumstances of the borrowing countries. CHAPTER 4: THE NATION-STATE IN THE CULTURE OF CAPITALISM TRUE OR FALSE QUESTIONS 1. The nation-state began thousands of years ago in the form of kinship groups or tribes. Answer: False 2. The function of the nation-state in the culture of capitalism is to protect the operation of free markets by ensuring a policy of non-intervention in the marketplace. Answer: False 3. The homogenization of language and culture allowed education to become the greatest agent of nationalism. Answer: True 4. It is believed that transnationalism and migration will strengthen the nation-state by creating a sense of "the other" within the state's own borders. Answer: False 5. The existence of the nation-state is critical for the success of multinational corporations. Answer: False MULTIPLE CHOICE QUESTIONS 1. Many theories of the reasons for the development of states suggest that __________. a. they are based on kinship or tribal groups and are an attempt to maintain the autonomy of such groups within specified boundaries b. they were formed to combine smaller states with similar cultures into larger groups to afford them more power c. they were formed to maintain social order and allow social growth and development d. they were formed to restrict killing, both inside and outside of the state, as the prerogative of the state. Answer: c 2. At the beginning of the 1900's, states were faced with political and economic problems due to a lack of integration among the institutions and groups within them. As a solution to these problems __________. a. nation-states were constructed b. military force was used to force colonies to assimilate c. religious and ethnic tolerance was encouraged d. fascist organizations were constructed Answer: a 3. State officials in France sought to eliminate what was conceived of as an ideological threat to the state and began the transition to the nation-state by __________. a. equalizing taxes for all regions to eliminate conflict b. making Catholicism the national religion c. eliminating linguistic and cultural diversity d. executing its hereditary leadership Answer: c 4. Van den Berghe says that the nation-state is a myth perpetuated by international bodies such as the United Nations and by scholars and that the perpetuation of the myth resulted in __________. a. in rapid globalization as nation-states tried to ally themselves with similar nation-states b. genocide being legitimized in the interests of building the nation-state c. in the autonomy of the indigenous populations within the nation-state d. great levels of warfare that are completely unnecessary and counterproductive to the world’s economy Answer: b SHORT ANSWER OR ESSAY QUESTIONS 1. The essential elements of the culture of capitalism are the consumer, laborer, capitalist and the nation-state. What are the functions of the nation-state which have contributed to the growth of the culture of capitalism? Answer: The nation-state has contributed to the growth of the culture of capitalism through several key functions: 1. Regulation: Establishing and enforcing laws that facilitate trade, protect property rights, and ensure contract enforcement. 2. Infrastructure: Investing in physical and economic infrastructure, such as transportation, communication networks, and financial systems, which support economic activities. 3. Stabilization: Managing economic stability through monetary and fiscal policies, controlling inflation, and mitigating economic downturns. 4. Social Welfare: Providing social services and safety nets that maintain social order and support the labor force. 5. Education and Research: Funding education and research institutions to foster innovation and skilled labor. 6. Global Integration: Facilitating international trade agreements and participating in global economic institutions to promote economic growth and competitiveness. 2. Define the terms "state" and "nation-state" and discuss their similarities and differences. Answer: State: A state is a political entity with a defined territory, a permanent population, a government, and the capacity to enter into relations with other states. It has sovereignty, meaning it is independent and self-governing. Nation-State: A nation-state is a type of state where a single nation (a group of people with common cultural, historical, and linguistic traits) predominates and the boundaries of the nation coincide with the boundaries of the state. It represents both the political entity (state) and the cultural identity (nation). Similarities: • Both are political entities with defined territories and governments. • Both have sovereignty and are recognized in international relations. Differences: • A state is defined by its political and territorial organization, whereas a nation-state combines the political entity with a distinct cultural or national identity. • Not all states are nation-states; some states encompass multiple nations, and some nations do not have their own state. 3. What part did colonialism play in the development of the nation-state? Answer: Colonialism played a significant role in the development of the nation-state by: 1. Imposing Boundaries: Drawing arbitrary borders that often grouped diverse ethnic and cultural groups, leading to future nation-states. 2. Introducing Governance Systems: Establishing administrative and political structures that became the foundation for modern nation-states. 3. Economic Exploitation: Creating economic dependencies that shaped the economies of former colonies, influencing their development as nation-states. 4. National Identity Formation: Sparking nationalist movements as colonized people sought independence and self-determination, leading to the creation of nation-states. 5. Cultural Exchange: Spreading ideas, technologies, and cultural practices that influenced the development of nation-state identities. 4. Is the modern state an agent of genocide and ethnocide? Support your answer with examples. Answer: Yes, the modern state has been historically implicated as an agent of genocide and ethnocide through policies and actions that target specific ethnic, religious, or cultural groups. Examples include: 1. Genocide: The Holocaust under Nazi Germany where millions of Jews, Romani people, and others were systematically murdered. 2. Ethnocide: Cultural assimilation policies, such as those imposed on Indigenous populations in various countries, aiming to erase their cultural identities. 3. State-Sponsored Violence: Instances like the Rwandan genocide where the state played a central role in orchestrating mass killings based on ethnic divisions. These examples illustrate how states have wielded power to perpetrate or facilitate acts of genocide and ethnocide, often with devastating consequences for targeted populations. 5. In what ways are transnational corporations a threat to the future of the nation-state? Answer: Transnational corporations pose threats to nation-states through: 1. Economic Influence: They can undermine national economic policies and regulations, shifting power towards global markets. 2. Political Influence: TNCs often have substantial lobbying power, influencing government policies and international agreements. 3. Erosion of Sovereignty: They can operate across borders, potentially bypassing national regulations and taxation, weakening state control. 4. Social Impact: TNCs' operations can exacerbate inequalities and social tensions within nations, impacting local communities and cultures. These factors challenge the traditional roles and capacities of nation-states, raising concerns about their future effectiveness in governance and regulation. PART 2: INTRODUCTION TRUE OR FALSE QUESTIONS 1. The market is a highly inefficient way of distributing valuable resources. Answer: False 2. Wal-Mart stores are an excellent example of the market operating as efficiently as it can. Answer: True 3. Generally, as the sticker prices of items go down, externalized costs go up. Answer: True MULTIPLE CHOICE QUESTIONS 1. Market externalities refer to __________. a. positive and negative side-effects of the market b. events that occur outside the market c. events having to do with the conversion of foreign exchange d. external costs not counted in the profit of a company Answer: a 2. For the market to operate as Adam Smith proposed, the following conditions must exist: __________. a. the ability of people to exert demand, competition between those supplying goods and services, and access to information regarding goods and services b. remarkable sales skills by a superior sales staff c. creative marketing, packaging, and the ability to project need d. forceful marketing, along with creative sales ability Answer: d SHORT ANSWER OR ESSAY QUESTIONS 1. What is meant by Polanyi's paradox? Answer: Polanyi's paradox refers to the idea that we know more than we can tell. It suggests that some forms of knowledge, especially tacit knowledge (implicit knowledge difficult to articulate), are hard to formalize or express explicitly. 2. Using Wal-Mart as a model of the market, evaluate their practices, both in trade and marketing. Are they efficient? Are their actions sustainable? Is the consumer ultimately satisfied, or are their other circumstances to take into account? Answer: Walmart's practices in trade and marketing emphasize efficiency through low-cost operations and extensive supplier networks. They use economies of scale to offer competitive prices, often impacting smaller businesses. Sustainability efforts include commitments to renewable energy and reducing waste, but there are concerns over labor practices and environmental impact. Consumer satisfaction varies; while prices are low, issues like worker treatment and local community impacts are debated, highlighting broader ethical and social considerations. CHAPTER 5: POPULATION GROWTH, MIGRATION, AND URBANIZATION TRUE OR FALSE QUESTIONS 1. The governments of most countries believe that they must maintain a growth rate of just over 2% to provide a supply of workers necessary to achieve economic development. Answer: False 2. A capitalist economy is driven by the consumption of commodities, therefore, the greater the population, the greater the demand will be for goods and services, resulting in higher economic development. Answer: True 3. Malthus believed that the growing poverty he saw was an indirect result of the industrial revolution. Workers were being replaced by machines and unable to provide for their families. Answer: False 4. Frequency of births is determined by the availability of modern contraceptive methods. Answer: False 5. Population regulation is best determined by adopting a global perspective rather than making decisions based on local economic and social conditions. Answer: False MULTIPLE CHOICE QUESTIONS 1. China succeeded in lowering population growth, while attempts to do so in India failed. As a result __________. a. economic growth and standard of living is higher in China indicating that population growth must be controlled in order for advancement b. both countries do well economically indicating that population growth alone is not the only factor which influences economic growth c. India cannot grow enough food to feed its people because its population is too high d. India’s economy collapsed Answer: b 2. A study of production and consumption done by the United Nations indicates __________. a. that in populations with low life expectancy, production exceeds consumption b. that countries with aging populations cannot have high rates of economic development c. that as life expectancy increases, output increases to exceed consumption d. that one in five people over-consumes and that they all live in the United States Answer: c 3. Eugenicists believe that poverty must be confronted with population control. They believe that poverty __________. a. is caused because there are more people than the earth's carrying capacity can support b. is caused by competition for scarce goods and resources c. is a consequence of faulty genes d. causes methylation of DNA and thus behavioral problems Answer: c 4. Mortality rates may be affected by economic need, and abortion and infanticide may occur in societies __________. a. that do not have access to modern birth control b. where there is a preference for male or female children c. that have not yet become industrialized d. where starvation is always close at hand Answer: b 5. Studies of fertility among the hunting and gathering populations, the French Canadian settlers, and the Irish indicate that __________. a. societies were able to adjust birth rates to adapt to the social and economic environment in which they existed b. these populations had lower life expectancies, because lack of birth-spacing led to poverty and famine c. when population density was low, more land could be devoted to agriculture, and enough food could be grown to eliminate famine d. societies were not able to make adjustments to birth rates or mortality rates Answer: a SHORT ANSWER OR ESSAY QUESTIONS 1. What do Malthusians believe is the relationship between population and hunger? Answer: Malthusians believe that population growth tends to outstrip food production, leading to increased hunger and suffering unless population growth is controlled. 2. What is meant by the term carrying capacity? Discuss whether we can determine a carrying capacity for humans, and support your answer using what you have learned from the chapter. Answer: Carrying capacity refers to the maximum population size that an environment can sustain indefinitely given the resources available. Determining a carrying capacity for humans is complex due to factors like technological advancements, resource distribution, and environmental impacts. While estimates can be made based on current conditions, human carrying capacity is dynamic and influenced by social, economic, and ecological factors, making it challenging to pinpoint definitively. 3. In the 50's and 60's, Western governments became concerned about population growth in the periphery. What were the concerns they expressed and their recommendations for dealing with these concerns. Answer: In the 1950s and 1960s, Western governments were concerned about rapid population growth in developing countries (periphery). Their concerns included fears of economic instability, strain on resources, and potential political instability. Recommendations included promoting family planning, improving healthcare, and fostering economic development to alleviate poverty and reduce birth rates voluntarily. 4. Some social scientists believe that the demographic transition theory is ethnocentric in many of its assumptions. Do you agree? Support your answers with examples. Answer: Yes, some argue that the demographic transition theory is ethnocentric because it assumes all societies follow a linear path of development similar to Western nations. It overlooks cultural, economic, and historical differences that influence population dynamics. For example, societies with different norms around family size or economic structures may not fit neatly into the theory's stages of transition. 5. It has been assumed by groups like the Malthusians that birth spacing was only achieved with the introduction of modern birth control methods. Support of refute this assumption. Answer: Refute. Birth spacing has historically been achieved through various methods including natural family planning, breastfeeding practices, and cultural norms regulating sexual behavior, long before modern birth control methods were introduced. CHAPTER 6: HUNGER, POVERTY, AND ECONOMIC DEVELOPMENT TRUE OR FALSE QUESTIONS 1. Population has grown as such a rapid pace during the past 40 years that the world cannot produce enough food to prevent famines from occurring. Answer: False 2. Increased technology in agriculture has decreased the need for labor resulting in higher profits which created affluence among the small farmers. Answer: False 3. Modern agriculture and food processing methods decrease the need for fossil fuels because they are much more efficient than labor intensive modes of food production. Answer: False 4. A study of famine in Malawi showed that cultural and societal factors affect entitlements often causing selective starvation. Answer: True MULTIPLE CHOICE QUESTIONS 1. Famine is caused by __________. a. food insufficiency b. exceeding local carrying capacity c. the inability to buy or grow food d. decrease in the carrying capacity of the land Answer: c 2. Conversion from swidden to plow agriculture __________. a. altered gender roles b. produced less food c. allowed more leisure time for families d. resulted in the immediate transformation of social systems to include the development of the state Answer: a 3. The reduction of the number of people in agriculture and the subsequent concentration of wealth __________. a. has created monopolies that have raised the food prices causing hunger b. has driven wages up in the agricultural sector c. keeps food prices and wages low in both the industrial and agricultural sectors d. keeps food prices low and wages high Answer: c 4. The green revolution __________. a. developed hybrid crops that used water more efficiently, thereby decreasing the need for irrigation in drier climates b. ran into problems, because the new plants required greater inputs of energy, making them too costly for small farmers c. helped to save the small family farms d. resulted in mass famine just as human populations were expanding Answer: b 5. The attempts at rapid economic development by many countries such as Brazil __________. a. increased GNP and raised the standard of living for all of the country's citizens b. gave the countries more control of international markets for commodities such as sugar and coffee c. forced many subsistence farmers to leave their land to seek jobs in urban areas where most ended up in slums d. have forced more and more people to abandon their farms and move onto communes Answer: c SHORT ANSWER OR ESSAY QUESTIONS 1. Studies indicate that hunting and gathering societies had adequate nutrition and enjoyed better health than agricultural societies. Why did they convert to agriculture to sustain themselves? Answer: Hunting and gathering societies transitioned to agriculture primarily for population growth, food security, and sedentary lifestyle benefits, despite potential health trade-offs. 2. Compare swidden agriculture with plow and irrigation agriculture. Why would one be chosen over the other? What are the positive and negative aspects of both? Answer: Swidden agriculture, also known as slash-and-burn, involves clearing land by burning vegetation, which enriches the soil temporarily. It's chosen for its low input requirements but can lead to soil degradation and deforestation over time. Plow and irrigation agriculture use tools like plows and water management for intensive cultivation, offering higher yields and stability but requiring more labor and resources. Choice depends on local conditions and goals for sustainability versus productivity. 3. What does the term neo caloric mean? What changes have occurred in the transition from early farming to modern agriculture using the neo caloric perspective? Answer: The term "neo caloric" refers to the net energy available from food after subtracting the energy expended in its production. In the transition from early farming to modern agriculture, there has been a shift towards higher neo caloric returns due to technological advances, increased efficiency in production, and greater use of fossil fuels and machinery. This has led to higher food yields but also raised concerns about environmental sustainability and energy dependency. 4. What determines how much and what kinds of food are produced? Give examples to support your answer. Answer: Several factors determine food production quantity and types, including: 1. Market Demand: Consumer preferences and purchasing power influence which foods are produced. For example, the demand for organic produce has driven increased production in that sector. 2. Government Policies: Subsidies, tariffs, and regulations can incentivize or discourage the production of certain foods. For instance, agricultural subsidies in the US have historically favored crops like corn and soybeans. 3. Climate and Geography: Suitable climates and soil types dictate which crops can be grown effectively in specific regions. For instance, rice production thrives in warm, wet climates like Southeast Asia. 4. Technological Advancements: Innovations in farming techniques, irrigation, and machinery impact productivity and the types of crops grown. Genetically modified crops are an example of technology influencing food production. 5. Cultural and Social Factors: Dietary preferences, traditions, and cultural practices also play a role. For example, the popularity of certain cuisines may drive demand for specific ingredients. These factors interact to shape agricultural practices globally, influencing both the quantity and variety of foods produced. 5. Sen says that food is acquired through entitlements. What are the entitlements to which he refers and how does this perspective help us to understand why hunger occurs? Answer: Amartya Sen's concept of entitlements refers to the various ways individuals can access food, such as through income, social support programs, or direct food provision. This perspective helps us understand hunger by highlighting that food insecurity isn't just about food availability but also about people's capabilities to acquire food through their entitlements. Factors like poverty, inequality, and social policies can restrict these entitlements, leading to hunger even when food is theoretically available. 6. According to James Scott, why has the goal of economic development for peripheral countries largely failed? Answer: James Scott argues that the goal of economic development for peripheral countries has largely failed because it often neglects local knowledge, priorities, and contexts. Development initiatives imposed from outside frequently ignore the complexities of local societies and economies, leading to resistance, unintended consequences, and limited sustainable outcomes. 7. It is estimated that 25-35% of all children suffer from nutritional deficiencies and/or hunger in the United States, which has large surpluses of food. Use what you have learned in this chapter to explain why this is occurring in one of the richest countries in the world. Answer: Nutritional deficiencies and hunger persist among children in the United States despite food surpluses due to factors such as poverty, inadequate access to nutritious food, food insecurity resulting from low incomes or unstable employment, and disparities in food distribution and availability across regions. These issues highlight systemic inequalities and gaps in social safety nets that affect vulnerable populations despite overall food abundance. Test Bank for Global Problems and the Culture of Capitalism Richard H. Robbins 9780205961054, 9780205917655, 9780134732794
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