Chapter 9 Social Stratification, Inequality, and Poverty True/False 1. Social stratification is the systematic study of social inequality. Answer: True 2. The dominant system of inequality throughout the world prior to capitalism was post industrialization. Answer: False 3. The more relevant statistic for assessing annual household incomes is by utilizing the mean rather than the media. Answer: False 4. According to Forbes magazine, Bill Gates is richest person in the world as of March 2012. Answer: False 5. Income refers to the net value of assets owned by individuals or families. Answer: False 6. Wealth refers to the net value of assets owned by individuals or families. Answer: True 7. The primary way in which most middle-class Americans accumulate wealth is through net financial assets (NFA). Answer: False 8. The Communist Manifesto was authored by Karl Marx and Friedrich Engels. Answer: True 9. According to Karl Marx, those who provide labor are the proletariat. Answer: True 10. The premise of socioeconomic status (SES) is to utilize multiple dimensions, such as income, education, and occupation, to study social class. Answer: True 11. Sociologists prefer to focus on a person's occupation in adulthood in order to study social class. Answer: True 12. Skill-biased technological change (SBTC) refers to the ways in which technological advancements create jobs that require high skill. Answer: True 13. Apple is one of the few companies that manufactures and assembles products in the United States. Answer: False 14. A progressive tax system is a system in which everyone, regardless of social class, pays the same tax rate. Answer: False 15. A high-mobility society is one where there is little connection between parents' and children's place in life. Answer: True 16. An immobile society can become a caste society. Answer: True 17. A correlation of zero between parents' income and their children's income means that there is no connection whatsoever between them. Answer: True 18. Meritocracy is a system in which rewards and positions are based on one's personal connections. Answer: False 19. According to the official definition of poverty, about 15 percent of Americans lived in poverty in 2010. Answer: True 20. Comparing one's income to that of others is the basic premise of absolute poverty. Answer: False 21. A measure of the minimum requirements needed for people to have the basic standards of food, clothing, and shelter is what sociologists mean by absolute poverty. Answer: True 22. The trend in which a disproportionate amount of the poor are female-headed households is known as the feminization of poverty. Answer: True 23. Among the working poor, even those who work at full-time jobs may not make enough to rise above the poverty line. Answer: True 24. In 2010, approximately 40 percent of children under the age of 18 lived in poverty. Answer: False 25. The problem of homelessness grew considerably in the 1960s. Answer: False Multiple Choice 1. __________ is the study of social inequality and the distribution of goods, resources, and power. A. Social mobility B. Social stratification C. Social differentiation D. Social status Answer: B 2. The concept of __________ is at the heart of the study of social stratification. A. social class B. consumption patterns C. Gini values D. social inequality Answer: D 3. In hunting and gathering societies, the __________, also referred to as the medicine man, had special privileges. A. shaman B. serf C. tribal chief D. master Answer: A 4. __________ had the fewest opportunities for social inequality to emerge. A. Feudal societies B. Industrial societies C. Hunting and gathering societies D. Agrarian societies Answer: C 5. Under feudalism, the labourers who were obligated to work for landowners were called __________. A. proletarians B. the bourgeoisie C. serfs D. slaves Answer: C 6. _________ have no rights of citizenship and are compelled to work for others. A. Slaves B. Serfs C. Shamans D. Proletarians Answer: B 7. The dominant system of inequality prior to the advent of capitalism is known as __________. A. slavery B. the caste system C. the class system D. feudalism Answer: D 8. The life expectancy at birth in Medieval England was about __________ years. A. 20 B. 30 C. 40 D. 50 Answer: B 9. The average income per person in the United States by 2008 was about __________. A. $23,000 B. $31,000 C. $40,000 D. $53,000 Answer: B 10. The industrial revolution brought about rapid and sustained economic growth, allowing for societies as a whole to get richer and for __________. A. modest changes in equality to disappear B. vastly greater inequalities to dissolve C. modest changes in equality to arise D. vastly greater inequalities to emerge Answer: D 11. In the United States, the median family income is __________ as the average family income. A. vastly below B. about the same C. above D. vastly above Answer: A 12. The median family income in the United States in 2009 was approximately __________. A. $40,000 B. $50,000 C. $60,000 D. $70,000 Answer: C 13. Why is it more relevant, from a sociological point of view, to assess family incomes by looking at the median instead of the mean? A. The gap between the richest individuals and everyone else has increased significantly. B. The gap between the richest individuals and everyone else has never been so narrow. C. The mean is principally used to define population size. D. In order to employ the Gini Index, the mean must be calculated. Answer: A 14. According to Forbes magazine, in 2012, the richest individual in the world was _________. A. American B. Chinese C. Indian D. Mexican Answer: D 15. According to U.S. Census Bureau data from 2010, the top 5 percent of Americans had family incomes above __________, whereas the bottom 20 percent had earnings under __________. A. $180,000; $21,000 B. $200,000; $21,000 C. $220,000; $16,000 D. $240,000; $16,000 Answer: A 16. The second and third richest people in the world in 2012 were Americans __________. A. Warren Buffett and Mark Zuckerberg B. Oprah Winfrey and David Koch C. Bill Gates and Oprah Winfrey D. Bill Gates and Warren Buffett Answer: D 17. The top 1 percent of the world's population controls _________ percent of the entire world's wealth. A. 12 B. 22 C. 32 D. 45 Answer: C 18. The bottom 30 percent of the world's population controls less than __________ percent of the world's wealth. A. 1 B. 10 C. 15 D. 25 Answer: A 19. Two billion of the world's poor live on less than __________ a day. A. $10 B. $8 C. $5 D. $2 Answer: D 20. __________ refers to the receipt of money over a period of time, whereas __________ refers to the net value of assets that one has at a given point in time. A. Wealth; income B. Income; wealth C. Capital; wealth D. Wealth; salary Answer: B 21. Most people, before retirement age, get most or all of their income from __________. A. their jobs B. income transfers from the government (such as Social Security) C. investments D. inheritances Answer: A 22. Illegal or "underground" earnings from crime or from untaxed (undeclared) work or activity are __________. A. considered as income B. not considered as income C. considered as wealth D. considered neither income nor wealth Answer: A 23. The primary way in which most Americans accumulate wealth is through __________. A. retirement accounts B. investments C. home ownership D. net financial assets Answer: C 24. Net financial assets include all of the following except __________. A. savings B. investments C. convertible assets minus debts D. underground earnings Answer: D 25. For poor and middle-class families, consumption often __________ reported income. A. is less than B. exceeds C. is about equal to D. is not correlated to Answer: B 26. Well-being includes all of the following aspects of everyday life EXCEPT __________. A. access to healthcare B. safety from crime and violence C. one's general level of happiness D. loan repayment schedules Answer: D 27. Between 1975 and 2008, household debt for middle-class families __________. A. declined B. declined, but only moderately so C. soared D. began levelling off Answer: C 28. Which of the following groups of people is NOT characteristic of class? A. people with similar economic situations B. people with similar opportunities in life C. people with diverse attitudes and behavior D. people who have the potential to engage in collective action Answer: C 29. The study of the distinctions among different social classes is called __________. A. social differentiation B. social stratification C. class analysis D. consumption analysis Answer: C 30. Who theorized that the critical divisions between classes were the result of the economic system? A. Max Weber B. Emile Durkheim C. Ralf Dahrendorf D. Karl Marx Answer: D 31. In Marxist terms, the important distinction between classes was between the __________ and the __________. A. proletariat; bourgeoisie B. capitalists; bourgeoisie C. proletariat; serfs D. serfs; bourgeoisie Answer: A 32. __________ is a designation of class that considers income, occupation, and salary. A. Life chance B. Socioeconomic status C. Consumption utility D. Class analysis Answer: B 33. Which of the following class schemes is NOT one of the five core classes identified by Erikson and Goldthorpe? A. the self-employed versus those employed by others B. the creative versus the noncreative C. supervisors versus those without supervisory responsibilities D. skilled manual laborers versus unskilled laborers Answer: B 34. One justification of inequality cited in The Sociology Project is associated with the desirability of ensuring that __________. A. continual class conflict spurs social change B. talented people are properly incentivized C. people are able to freely choose which employers they work for D. competition for work is stiffest at the highest salary levels Answer: B 35. Defenders of inequality often point to __________ in their arguments against using legislation to make society more equal. A. Sweden B. the former Soviet Union C. the Confederate States of America D. the People's Republic of China Answer: B 36. The efficiency justification of inequality is associated with the idea that __________. A. the possibility of disproportionate rewards motivates individuals to take risks B. people are free to develop their own talents C. markets have the ability to develop new business models D. markets can develop unimpeded by government intervention Answer: A 37. Psychologists agree that talent is something that people __________. A. can acquire B. cannot acquire C. cannot acquire without monetary incentives D. are born with Answer: A 38. Countries where disparities between the poor and the rich are small are called __________. A. equilateral B. equalitarian C. egalitarian D. efficient Answer: C 39. The Federal Income Tax was established permanently by the __________ A. 12th Amendment B. 14th Amendment C. Bill of Rights D. 16th Amendment Answer: D 40. In a perfectly equal society, the income share of the wealthiest one-tenth of families would be equal to __________ percent of the national income. A. one-tenth of 1 B. 1 C. 10 D. 20 Answer: C 41. The higher the income share of the wealthiest 10 percent in a society __________. A. the more equal that society is likely to be B. the less equal that society is likely to be C. the less efficient that society is likely to be D. the more efficient that society is likely to be Answer: B 42. Compared with the wealthiest 10 percent of present-day Americans, the wealthiest 10 percent of Americans in the 1920s received _________ of national income. A. a smaller share B. a larger share C. a much larger share D. about the same share Answer: D 43. In the 1960s, the U.S. government launched the __________, a policy initiative to reduce poverty and racial inequality. A. Great Deal B. Great Society C. New Deal D. New Society Answer: B 44. Comparative data indicate that, of all the following countries, only __________ is not considered egalitarian. A. Sweden B. Norway C. the United States D. Denmark Answer: C 45. In general, technology __________ jobs that require higher levels of education while it __________ jobs that require middle and lower levels of education. A. replaces; complements B. complements; replaces C. raises wages for; lowers wage for D. lowers wages for; raises wages for Answer: B 46. SBTC is an acronym sociologists use for __________. A. skill-based technological change B. sustainable business tax credits C. small business technology councils D. skill-biased technological change Answer: D 47. On the Gini Index, which measures income inequality, a score of 1 indicates __________. A. complete inequality B. complete equality C. average levels of inequality D. moderately high levels of inequality Answer: A 48. Compared with other countries of the world, the Gini Index for the United States is about equal to the scores of __________. A. France, Germany, and the United Kingdom B. Botswana, Sierra Leone, South Africa, C. Argentina, Iran, and Nigeria D. Denmark, Norway, and Sweden Answer: C 49. The larger the Gini Index, ______________. A. the more equality a region has B. the more inequality a region has C. the more unemployed people a region has D. the more employed people a region has Answer: B 50. Apple Computer manufactures all iPads and iPhones in __________. A. China B. China and India C. China, Mexico, and the Philippines D. China, Mexico, and the United States Answer: A 51. As a result of economic restructuring, average wages have __________ since the 1970s. A. increased B. decreased C. stagnated D. increased then sharply declined Answer: C 52. __________ is a measure of the output per worker per hour. A. Productivity B. Progressivity C. Production efficiency D. Labor efficiency Answer: A 53. The premise of the __________ is that billionaires, millionaires, and all those at the top of the income ladder are expected to pay more in taxes than minimum-wage employees. A. Gini Index B. Lorenz curve C. correlation coefficients D. progressive tax system Answer: D 54. When is the value of the minimum wage likely to decrease? A. when productivity declines B. when productivity increases C. when inflation increases D. when prices deflate Answer: D 55. The majority of minimum-wage employees are __________. A. teenagers B. whites C. Hispanic D. adults Answer: D 56. The proportion of employed workers who belonged to unions peaked in the _________, when __________ of U.S workers belonged to a union. A. 1950s; one-third B. 1950s; one-half C. 1960s; one third D. 1950s; one half Answer: A 57. Because there are no obvious ways of determining how much opportunity individuals really have, social scientists measure it indirectly by examining __________. A. social backgrounds B. social hierarchies C. social mobility D. social stagnation Answer: C 58. In a meritocracy __________. A. rewards are linked to personal ability B. caste, more than any other factor, influences life chances C. personal connections have a disproportionately high impact on life chances D. persons from an upper-class background will have fewer life chances than other members of the same society Answer: A 59. Sociologists refer to societies in which individuals experience social mobility as __________. A. caste societies B. closed societies C. open societies D. status-consistent societies Answer: C 60. Criticisms of the poverty line include all of the following EXCEPT: A. It does not account for changes in the cost of living from state to state. B. It does not account for government assistance programs, such as food stamps. C. It does account for the taxes that people pay. D. It measures only relative poverty. Answer: D 61. Lana, a single woman with no dependents, is unable to afford basic necessities, such as housing and healthcare. What type of poverty is she experiencing? A. relative poverty B. absolute poverty C. feminization of poverty D. institutional poverty Answer: B 62. The feminization of poverty is a term used to describe __________. A. single-parent families in which a woman is the primary care giver B. two-parent families in which a woman is the primary provider C. two-parent families in which a woman is the primary care giver D. single-parent families in which a woman is the primary provider and primary care giver Answer: D 63. How much did workers in 2010 have to earn per hour to reach the poverty line for a family of four, working 40 hours per week for 48 weeks a year? A. $8.72 B. $9.75 C. $10. 75 D. $11.62 Answer: D 64. When did homelessness begin to grow into a serious problem in the United States? A. 1950s B. 1960s C. 1970s D. 1980s Answer: D 65. Why is it difficult to get an accurate count of the homeless? A. Many of the homeless may temporarily live with friends and family. B. Many of the homeless are adept at hiding from researchers. C. Many of the homeless are in and out of hospitals. D. Many of the homeless live in areas too dangerous for researchers to visit. Answer: A Scenario Multiple Choice 1. Patricia works as a sales manager and earns approximately $60,000 a year. She owns her own home and has $20,000 in the bank as an emergency fund. She also owns a rental property, from which she earns $12,000 a year. Which of the following responses best represents her wealth? A. her gross $60,000 income B. her rental property and the $12,000 income it produces C. her two properties and her $20,000 savings D. her two properties and her $12,000 rental-property income Answer: C 2. Kenneth lives in a low-income, high-crime neighbourhood. His home is poorly ventilated, which triggers asthma attacks. As a result of these stressors, he has high blood pressure. How would sociologists describe Ken's well-being? A. as compromised B. as consumptive C. as status impaired D. as structurally immobile Answer: A 3. Sandra is a corporate attorney. She graduated from Harvard Law School at the top of her class and earns $250,000 a year. Sociologists who evaluate Sandra's social position based on the dimensions of her income, education, and occupation would describe her as __________. A. upwardly mobile B. vertically mobile C. high SES D. low SES Answer: C 4. Renee decides to start her own business. She wants to sell some of her original textile designs and has quit her full-time job as a web developer and spent all of her savings to launch her new business. To what would a sociologist attribute Renee's seemingly risky decisions? A. the talent justification B. the efficiency justification C. skill-biased technological change D. globalization Answer: B 5. Ben was a bank teller at Goliath National Bank, until the tellers at Goliath were replaced by ATM machines. As a result, Ben decided to go back to school and update his computer skills. Ben's scenario best represents a consequence of __________. A. the talent justification B. the efficiency justification C. skill-biased technological change D. globalization Answer: C 6. Which of the following scenarios best represents outsourcing? A. the opening of a call centre for an American credit card company in the Philippines B. a reduction in airport security staff when new surveillance equipment is installed C. the movement of a manufacturing facility from an urban centre to the urban-rural fringe D. the enrolment of unskilled labourers in trade schools Answer: A 7. The components of Nike tennis shoes are produced in different parts of the world. The final assembly of the shoes is completed in China. Thereafter the shoes are shipped to the United States, where David purchases a pair at a suburban mall in Denver. Of the following economic phenomena, which does this scenario best represent? A. economic restructuring B. outsourcing C. skill-biased technological change D. globalization Answer: D 8. Remington is involved in the Occupy Wall Street movement. He camped out for weeks at a park opposite the statehouse in Columbus, Ohio, and was eventually arrested. Remington, like other protestors, has many concerns about his economic condition, but he likely joined the movement to protest __________. A. the unconstitutionality of healthcare reform B. the outsourcing of American jobs to Asia C. the disparity in income and wealth between the top 1 percent of Americans and everyone else D. the decline of labor union participation Answer: C 9. Candace and Bill are married with two children. Their annual household income in 2010 was below the poverty line. Given this scenario, you can accurately infer that __________. A. they live in absolute poverty B. neither Candace nor Bill have full-time jobs C. their annual income is below $22,000 D. their savings are not likely to cushion them in the event of severe illness Answer: C 10. Karen is a home care aid. She earns about $10.00 an hour and works 40 hours a week. She is unable to save, and last month her car broke down. She cannot not afford to fix her car, being already late in paying her bill for gas and electricity. From this description of Karen's life, you conclude that she is a member of which class? A. the middle class B. the lower middle class C. the working poor D. the underclass Answer: C Short Answer 1. Why was the study conducted in 2005 of the effects of the Chilean earthquake significant to the study of social inequality? Answer: In 2005, an earthquake in Chile provided a kind of natural experimental laboratory in which researchers could assess the effect of a mother's stress during pregnancy on her baby because the earthquake affected some Chilean cities but left others untouched. The pregnant women who lived in the affected areas gave birth to low-weight babies. Many were born prematurely. Low-birth-weight babies and premature babies have more health issues than full-term babies. They may suffer from health problems and issues with cognitive development. It is believed that women in poverty can experience the same kinds of stressors as the women in Chile who were impacted by the 2005 earthquake. 2. Explain how the system of slavery perpetuated social inequality. Answer: Slaves had no rights and were forced to work for others. Slavery allowed for the creation of wealth for the slave owner but the slave had no part of it. Slave owners would profit off the backs off of slaves. 3. Does a high income guarantee that a person will accumulate a lot of wealth? Answer: Although there are advantages to having a high income, high income alone does not always guarantee wealth, especially if people consume all their earnings without taking steps to obtain resources that, over time, add to their stores of wealth (e.g., real estate, investments, savings). 4. Why does consumption often exceed the income of poor families? Answer: The poor may underreport their incomes, thereby making it appear that they consume more than they earn. The poor may also receive money or goods from friends or family members. 5. What do sociologists mean by the term class? Answer: Class is a sociological concept that refers to a group of people who share a similar social and economic position in society. They have similar opportunities and benefit from or are harmed by the same kinds of government policies. They also have similar life chances. 6. Why is socioeconomic status (SES) a useful tool in determining social class? Answer: Rather than focusing just on income (how much someone earns) to define class, some sociologists affirm that consideration of incomes, occupations, and levels of education provides a better indication of social class. The basic premise of the SES approach is that by combining a number of different attributes of any individual, researchers can properly place an individual in relation to others and assign that individual a class. 7. Discuss the criticisms of the talent justification. Answer: The talent justification states that people with special talents deserve to be rewarded in the labor marketplace with higher wages and income. But, as research has shown, talent has to be cultivated or it is wasted. People without financial and other resources are not as likely as people with means to see their talents develop. 8. What role does technology play in perpetuating social inequality? Answer: Technology can complement some jobs but eliminate other jobs. For example, at some grocery stores, cashiers have been replaced with self-checkout stations. Declines in opportunities for low-skill workers to get steady employment contribute to social inequality. Technology can serve to complement other types of jobs. For example, an auto mechanic may be more productive by using technology to diagnose problems with cars and earn higher wages thereby, but such jobs are often not available to workers who lack certifications and the proper credentials. 9. Discuss the connection between globalization and outsourcing. Answer: Globalization is the growing permeability of national borders and the increase in flows of goods, services, and people across national borders. It allows countries to import manufactured goods that are made more cheaply elsewhere, and business that are able to hire labor more cheaply internationally may choose to move jobs overseas from their domestic base of operations. 10. Explain what is meant by deindustrialization and discuss how it contributes to social inequality. Answer: Deindustrialization is a facet of economic restructuring. It refers to the decline in industrial and manufacturing jobs and an increase in service jobs in fields such as healthcare, finance, and retail. Many service-sector jobs are low skill and, consequently, pay low wages. Factory jobs, which used to provide good pay and benefits, are now in short supply, adding to social inequality. 11. Explain why there is little sociological research on the upper social classes. Answer: Because of the exclusive nature of the group, it is difficult for researchers to gain access to the upper classes. It is easier to get research grants to study poor children and their families than it is to study the wealthy, so the research foundation pertaining to the wealthy is quite thin. 12. Explain what is meant by the "feminization of poverty." Why do you think women are more likely to live in poverty? Answer: Families in which there is a single parent—usually a female—are much more likely to be poor. This phenomenon has been called the "feminization of poverty," and it highlights the difficulties of complementing the roles of primary caregiver and provider on a single income. 13. Why do sociologists not attribute poverty to laziness? Answer: Laziness among the poor is a stereotype. Research shows that many people who fall below the poverty line work full time, but, because they are so poorly paid, they cannot escape poverty. Low-paying jobs are also more likely to be unsteady (temporary or part time), further diminishing the ability of the working poor to lift themselves out of poverty. 14. Why is poverty considered to be a generational problem? Answer: Childhood poverty creates pervasive problems that persist across generations. Children born into poverty have a greater likelihood of living in poverty as adults. Poorer families have fewer resources to distribute among their children. Children of the poor are more likely to complete fewer years of schooling, work fewer hours as adults, and earn lower wages. 15. Why did homelessness become a serious concern in the 1980s? Answer: In the 1980s,deinstitutionalization was the norm. Psychiatric hospitals released mentally ill people who could not care for themselves and wound up homeless. The disintegration of low-income housing, along with high unemployment among high-risk groups, was also indicative of the decade. Essay 1. Why is it misleading to refer to annual household income in terms of the per-person mean rather than the median? Answer: The average (or mean) income per person in the United States is around $31,000, which would mislead some to assume that the average income for a family of four would be $124,000,which is not at all accurate. The top-tier income earners in the United States earn so much money that their incomes inflate the mean statistic. The median, or midpoint, of all family incomes, where half of all family incomes are above and below median, is around $60,000. 2. Why is it important to make the distinction between income and wealth? Answer: Income refers to one's earnings over a specified period of time. Earnings from employment, investments (interest income), or even from underground activity all qualify as income. Wealth refers to the net value of assets and is a long-term measure of household resources. Wealth can include real estate and the value of savings and investments, not just the income they earn. Persons can have high levels of income but have very little wealth if their spending patterns prevent them from saving. Persons with modest incomes can have a significant amount of wealth if they invest wisely and save. 3. Discuss the differences between the talent justification of inequality and the efficiency justification of inequality. Answer: The talent justification states that a person's talents should be rewarded in the marketplace, but, because it can be expensive and time-consuming to nurture talents, not everyone is able or can choose to nurture their talents and realize income gains therefrom. The efficiency justification argues that inequality is the expected outcome of marketplace economics. Marketplaces function to motivate people to take calculated risks that may pay off in terms of higher incomes. Not everyone, however, is motivated by the risk-and-reward dynamics of marketplaces. 4. Why is skill-biased technological change (SBTC) having such pronounced impact on social inequality? Answer: Technology can complement some jobs but eliminate other jobs. For example, at some grocery stores, cashiers have been replaced with self-checkout stations. Declines in opportunities for low-skill workers to get steady employment contribute to social inequality. Technology can serve to complement other types of jobs. For example, an auto mechanic may be more productive by using technology to diagnose problems with cars and earn higher wages thereby, but such jobs are often not available to workers who lack certifications and the proper credentials. Technological advancements that create jobs are biased toward high-skilled occupations that require a college education or more, which disadvantages low-income workers who often lack the means to pursue degrees. If, however, the number of college graduates increases at the same pace as technology, so that the educational system meets the needs of the economy for workers with higher skills, then college graduates will not receive a premium simply because there will be more of them. 5. What was the initial goal of Occupy Wall Street movement, when it emerged in fall 2011? Do you feel that the movement has been successful? Answer: With the bailout of the banks, which lost billions of dollars making bad loans and investments, many Americans were disillusioned. Bank bailouts were one of the precipitating events that caused people to mobilize to protest the growing disparity between the 1 percent of top income earners and wealth owners and everyone else, the 99 percent. Yes, the movement was successful in calling attention to the disparity between the 99 percent and the 1 percent. And it was also successful in its ability to gain adherents. The movement effectively spread, from its New York base, to many American cities. However, as trends in income inequality have not been reversed, the movement has not yet achieved its principal aim. 6. Describe the status of unions in the United States since the 1950s. Why is the decline in union membership thought to contribute to inequality? Answer: Labor unions are collective organizations that represent workers in their dealings with employers. The proportion of employed workers belonging to unions reached a peak in the 1950s in the United States; at that time, about one-third of all workers belonged to a union. Unionization has dropped dramatically since then, particularly during the 1980s. As of 2010, only 12 percent of all workers belonged to a union, and the majority of union workers are employed in government jobs where wages are less unequal. Today, only about 7 percent of private-sector employees are in unions, a figure that continues to decline each year. This decline leaves America with the weakest unions of all the rich countries and reduces the collective power of workers to push for a greater share of profits. As with the decline in the minimum wage, the decline of unions is thought to contribute to inequality because unions tend to raise average wages and reduce the amount of profits that employers are able to keep for themselves. 7. How is inequality of opportunity measured? Answer: Inequality of opportunity refers to the ways in which inequality shapes the opportunities that children and young adults have to maximize their potential. If an individual's chances to do well in life depend on the advantages or disadvantages of birth and early childhood, then we say opportunity is unequally distributed. However, measuring opportunity in any society is not a simple research question. Because there is no one obvious way of determining how much opportunity individuals really have in a society, social scientists use social mobility as an approximate measure. Social mobility is the pattern of intergenerational inheritance in a society and a measure of the extent to which parents and their children have similar or different social and economic positions in adulthood. A high-mobility society, where there is relatively little connection between parents' and children's place in life, approximates the ideal of equality of opportunity. In highly mobile societies, where a child ends up in life is determined largely through her or his own achievements. By contrast, when there is a relatively close connection between parents and their children's positions when children reach adulthood, social mobility is low. In low mobility societies, the advantages or disadvantages of birth fully determine one's social position. 8. Explain how families, labor markets, and government policies are correlated in social inequality, specifically in terms of how it impacts children. Answer: Families determine how much education and what kind of education children acquire, which has an impact on their future earnings. Labor markets determine whose skills and labor are demanded and rewarded. For example, if the market demands the labor of sociologists and you have just earned a degree in sociology, your opportunities for employment will be better than opportunities in other fields of employment not equally in demand. Government policies correlate to social inequality because the government regulates both labor markets and educational systems. Government decides how much assistance poor children receive, how much schools in poor and rich areas receive in public funding, and how much aid is rewarded to college students. 9. What is the significance and limitations of the poverty line? Answer: The poverty line is the way that the U. S. government defines those who are in poverty. It sets an income threshold that is necessary for purchasing basic necessities. Below that threshold, which varies by family size, people are considered to be in poverty. Criticisms of the poverty line centre on what it fails to measure. It takes into account only pre-tax income and does not adjust for differences in cost of living from city to city or from state to state. For example, it is much more expensive to live in San Francisco, California, than in Ashland, Kentucky. It also does not take into account any assistance that poor families receive, such as food stamps. It was established in 1960 and has been updated yearly accounting only for inflation. 10. Explain the distinction between relative and absolute poverty. Answer: Relative poverty is used to define people as poor by comparing their income and resources to those of other people in society. People may experience relative poverty, even if their incomes are higher than the government-set poverty line, if they do not have reliable transportation in a city where other people have cars and move about freely at will. Absolute poverty is a measure of the minimum requirements needed for people to have basic standards of food, clothing, health, and shelter. The poverty line is a measure that is used by the U.S. government to determine the minimum amount of income people need to be able to afford these basic necessities. Anyone below this threshold is considered to be in poverty. Test Bank for The Sociology Project : Introducing the Sociological Imagination Jeff Manza, Richard Arum, Lynne Haney 9780205949601, 9780205093823, 9780133792249
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