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CHAPTER
16
WHAT ARE THE SYSTEMS OF ECONOMICS AND POLITICS? 283
economic systems: capitalism, socialism, and democratic socialism
political systems: traditional, charismatic, and rational-legal authority
HOW DO SOCIOLOGISTS VIEW ECONOMIC AND
POLITICAL SYSTEMS? 293
functionalism: power is divided among groups who must work together
conflict theory: only the power elite have power
symbolic interactionism: leaders must be charismatic to gain power and prestige
HOW DOES THE SYSTEM WORK FOR VETERANS? 295
veterans do not receive all the medical care and assistance they need
get the topic:
WHAT ARE THE SYSTEMS OF ECONOMICS
AND POLITICS?
Politics in the United States
The Nature of Power 290
Functionalism 293
Economic Systems 283
Global Economy 287
Political Systems 287
Types of Government 288
Conflict Theory 293
Symbolic Interactionism 293
Lack of Assistance for Veterans
289
295
Chapter 16
296
Theory
FUNCTIONALISM
293
• power is dispersed among different groups
• groups must work together for society to function properly
• global cooperation is beneficial for everyone
• U.S. system of checks and balances
• includes the U.S. democratic system
• consolidation of media conglomerates
SYMBOLIC INTERACTIONISM
293
• leaders must have charisma in order to gain power
• charismatic leaders can persuade people to do things they
normally wouldn’t do
CONFLICT THEORY
• leader's sway can be used for good or evil
293
• power is held by a small group of elites
• elites are in a struggle to keep power, and non-elite are in a struggle
to gain power
Key Terms
economic system, or economy, is the social
system that helps a society organize what it
produces, distributes, and consumes. 283
capitalism is an economic system in
which individuals can own the means of
production as well as the services that others
may need. 283
free markets generally refer to markets that are
free from government control. 283
monopoly is the exclusive possession or
control of the supply or trade in a service.
284
price elasticity of demand is the change in a
good’s demand as its price changes. 284
socialism is the economic system by which
resources and the means of production are
owned collectively by the citizens. 284
demand is the desire for a good
or service. 284
democratic socialism is the economic system
that advocates running government
democratically and for the good of the
most people. 285
supply is the amount of a good or
service available. 284
convergence theory is the tendency for
capitalism and socialism to converge. 285
corporation is a business viewed as a “legal
person” that has some objective, usually to
make a profit for its owners. 287
transnational corporations or multinational
corporations are corporations that operate in
at least two countries and have the interests
of their company at heart rather than the
interests of their home country. 287
embargo is a long-standing trade
restriction. 287
NAFTA (North American Free Trade
Agreement) is a policy that was established in
1994 to allow free trade between the United
States, Mexico, and Canada. 287
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(continued)
tariffs are taxes levied on trade items.
287
political systems are social institutions that are
based on an established set of practices for
applying and realizing a society’s goal. 287
monarchy is a political system whereby
leadership is based on the idea that leaders are
selected by divine right or heritage. 288
authoritarian regimes involve an individual
or small group taking power and using
repression and other techniques to
maintain it. 288
totalitarianism is a type of authoritarian
government whereby the government controls
everything in people’s lives, and generally those
who disagree are punished. 288
dictator refers to a single leader with absolute
power. 288
oligarchy is a small group of very influential
people who control the government. 288
democracy is a government whereby power is
held by the people and exercised through
participation and representation. 288
alienation refers to a person’s sense of
powerlessness, meaninglessness, and a general
cynicism toward the political process. 288
military-industrial complex is a combination
of the armed forces and defense industries that
provide weapons and other materials to the
country. 290
pluralism is a model whereby power is spread
amongst the masses. 293
Sample Test Questions
These multiple-choice questions are similar to those found in the test bank that accompanies this textbook.
1. Which is an effect of NAFTA?
a. Canada stopped trading with Mexico altogether.
b. The United States started trading with Mexico and Canada.
c. No tariffs were levied between the United States, Mexico,
and Canada.
d. Heavier tariffs were levied between the United States, Mexico,
and Canada.
ESSAY
1. Why is it difficult for a nation to either be entirely capitalist or entirely socialist?
2. How do expanding markets affect countries’ economic and
political systems?
3. What are the four problems and solutions Sachs proposes?
4. Why do poorer peripheral countries usually have traditional governments?
5. Do charismatic leaders always make the best leaders? Why or why not?
297
2. Which of the following statements on rational legal authority is false?
a. The system is based on agreement, not fear.
b. People accept the word of those in authority.
c. Laws are official until they are written down.
d. The rules are accepted by a majority of the population.
Economy and Politics
3. A _______ economic system believes markets should be run by the
people, but not for profit.
a. capitalist
b. totalitarian
c. power elitist
d. democratic socialist
4. Increased military spending during peacetime means that the
poverty level will increase.
a. True
b. False
5. Which of the following is one reason why Miller and Listhaug believe
Swedish citizens have more trust in their officials than U.S. citizens do?
a. Sweden has more political parties than the United States.
b. Swedish officials are jailed if they lie to the public.
c. Swedish officials listen to what the citizens say.
d. Sweden has lower taxes than the United States.
WHERE TO START YOUR RESEARCH PAPER
To learn more about the Democratic Party, go to
www.democrats.org/
To learn more about the Republican Party, go to
http://www.rnc.org/
To find more information about other political parties in the United States,
go to http://www.politics1.com/parties.htm
For more information about NAFTA, go to
http://www.fas.usda.gov/itp/Policy/NAFTA/nafta.asp
For more information about the Department of Veterans Affairs, go to
http://www.va.gov/
To learn more information about additional available assistance for
veterans, go to http://www.veteransassistance.org/
Remember to check www.thethinkspot.com for additional information, downloadable flashcards, and other helpful resources.
ANSWERS: 1. c; 2. c; 3. d; 4. a; 5. a