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Sociology in Our Times 10Th Edition Kendall Test Bank Full Chapter PDF
Sociology in Our Times 10Th Edition Kendall Test Bank Full Chapter PDF
True / False
1. Global stratification refers to the unequal distribution of wealth, power, and prestige on a global
basis, resulting in people having vastly different lifestyles and life chances both within and among
the nations of the world.
a. True
b. False
ANSWER: True
2. Low-income countries are primarily hunting and gathering nations with some industrialization and
moderate levels of national and personal income.
a. True
b. False
ANSWER: False
3. In 1960, the wealthiest 20 percent of the world population had more than 30 times the income of
the poorest 20 percent of the world population; by 2005, the wealthiest 20 percent of the world
population had almost 85 times the income of the poorest 20 percent of the world population.
a. True
b. False
ANSWER: True
4. First World nations consisted of the rich, industrialized nations that primarily have capitalistic
economic systems and democratic political systems.
a. True
b. False
ANSWER: True
5. The 2008 U.S. financial crisis led to a global recession, which spread from high-income
economies to lower-income economies. The economic slowdown particularly harmed countries
located in the sub-Saharan Africa.
a. True
b. False
ANSWER: True
6. Ideas regarding underdevelopment were popularized by President Kennedy in his 1949 inaugural
address. He stated that nations in the Southern Hemisphere were “underdeveloped areas”
because of their low gross national product.
a. True
b. False
ANSWER: False
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7. Today, gross national income (GNI) is a term that refers to all the goods and services produced in
a country in a given year, plus the net income earned outside the country by individuals or
corporations.
a. True
b. False
ANSWER: True
8. About onethird of the world’s population lives in the fiftytwo lowincome economies, where most
people engage in agricultural pursuits, reside in nonurban areas, and are impoverished.
a. True
b. False
ANSWER: False
ANSWER: True
10. Less than one-third of the residents of middle-income economy nations live in poverty.
a. True
b. False
ANSWER: False
11. Nations with high-income economies continue to dominate the world economy, despite capital
flight (the movement of jobs and economic resources from one nation to another) and
deindustrialization (closing plants and factories because of their obsolescence).
a. True
b. False
ANSWER: True
12. According to social scientists, absolute poverty exists when people may be able to afford basic
necessities but are still unable to maintain an average standard of living; it is measured by
comparing the actual income against the income earner’s expectations and perceptions.
a. True
b. False
ANSWER: False
13. In 1990, the United Nations Development Program introduced the Human Development Index
(HDI), establishing three new criteria—in addition to gross domestic product (GDP)—for
measuring the level of development in a country: life expectancy, health, and education.
a. True
b. False
ANSWER: True
14. The average life expectancy at birth of people in middle-income countries remains about 10 years
less than that of people in very high-income countries; moreover, the life expectancy of people in
low-income countries is as much as 20 years less than that of people in very high-income
countries.
a. True
b. False
ANSWER: True
15. According to the United Nations, women constitute about 40 percent of those who are illiterate.
Literacy is crucial for women because it has been closely linked to increases in fertility, improved
child health, and decreased earnings potential.
a. True
b. False
ANSWER: False
16. Analysts using a development framework typically view industrialization and economic
development as essential steps that nations must go through in order to reduce poverty and
increase life chances for their citizens.
a. True
b. False
ANSWER: True
17. According to modernization theory, the high-income, more-developed nations can improve their
standard of living only with a period of intensive economic growth and accompanying changes in
people’s beliefs, values, and attitudes toward work.
a. True
b. False
ANSWER: False
18. U.S. President John F. Kennedy’s economic advisor Walt W. Rostow suggested that all countries
go through four stages of economic development. He stated that the second stage is the take-off
stage—a period of economic growth accompanied by a growing belief in individualism,
competition, and achievement.
a. True
b. False
ANSWER: True
19. The new international division of labor theory states that the poorer nations are trapped in a cycle
of structural dependency on the richer nations due to their need for infusions of foreign capital and
external markets for their raw materials.
a. True
b. False
ANSWER: False
20. According to sociologist Immanuel Wallerstein’s world systems theory, the capitalist world
economy is a global system divided into a hierarchy of three major types of nations in which
upward or downward mobility is conditioned by the resources and obstacles that characterize the
international system.
a. True
b. False
ANSWER: True
21. Most low-income countries in Africa and South America are core nations that are dependent on
peripheral nations for capital, have little or no industrialization, and have uneven patterns of
urbanization.
a. True
b. False
ANSWER: False
22. The new international division of labor theory has changed the pattern of geographic specialization
between countries, whereby high-income countries have now become dependent on low-income
countries for labor.
a. True
b. False
ANSWER: True
23. Buyer-driven commodity chains is the term used to describe industries in which transnational
corporations play a central part in controlling the production process. Industries that produce
automobiles, computers, and other capital- and technology-intensive products are examples.
a. True
b. False
ANSWER: False
24. CARE International assists the world’s poor in their effort to achieve social and economic well
being. Its work reaches 25 million people in fifty-three nations in Africa, Asia, Latin America, and
Eastern Europe.
a. True
b. False
ANSWER: True
25. According to the World Health Organization, infectious diseases are far from under control in many
nations due to such factors as unsanitary or overcrowded living conditions.
a. True
b. False
ANSWER: True
Multiple Choice
26. The unequal distribution of wealth, power, and prestige on a worldwide basis, resulting in people
having vastly different lifestyles and life chances both within and among the nations of the world, is
referred to as:
a. global stratification b. universal
c. planetary d. cosmic
ANSWER: a
ANSWER: a
28. Nations with industrializing economies, particularly in urban areas, and with moderate levels of
national and personal income, are referred to as:
a. relative-income countries b. farming countries
c. middle-income countries d. negligent countries
ANSWER: c
29. Low-income countries are primarily __________ with little industrialization and low levels of
national and personal income.
a. service-oriented nations b. pastoral nations
c. urbanized nations d. agrarian nations
ANSWER: d
30. The income gap between the richest and the poorest 20 percent of the world population:
a. is greater in urban than in rural areas
b. has significantly decreased
c. is beginning to decline
d. continues to widen
ANSWER: d
31. In 1960, the wealthiest 20 percent of the world’s population had more
than __________ times the income of the poorest 20 percent.
a. 10 b. 20
c. 30 d. 40
ANSWER: c
32. The 2008 U.S. financial crisis led to a(n) _________ that spread from high-income economies to
lower-income economies. The economic slowdown particularly harmed countries located in the
sub-Saharan Africa.
a. global economic recession b. depression
c. economic downturn d. sift in the economy
ANSWER: a
33. By 2010, the wealthiest 20 percent of the world population had almost __________ times the
income of the poorest 20 percent.
a. 50 b. 100
c. 150 d. 200
ANSWER: c
34. The idea of __________ has become the primary means used in attempts to reduce social and
economic inequalities and alleviate the worst effects of poverty in the less industrialized nations of
the world.
a. development b. foreign aid
c. socialism d. international intervention
ANSWER: a
ANSWER: a
36. One of the primary problems encountered by social scientists studying __________ and social
and economic inequality is with determining what terminology should be used to refer to the
distribution of resources in various nations.
a. cosmic stratification b. universal stratification
c. in-group stratification d. global stratification
ANSWER: d
37. After __________, the terms “First World,” “Second World,” and “Third World” were introduced by
social scientists.
a. the Civil War b. the Korean War
c. World War II d. the Vietnam War
ANSWER: c
38. The ___________ was introduced by social analysts to distinguish among nations on the basis of
their levels of economic development and the standard of living of their citizens.
a. levels of development approach
b. three worlds approach
c. classification of economies approach
d. global distinction approach
ANSWER: b
39. Rich, industrialized nations that primarily had capitalist economic systems and democratic political
systems are referred to as:
a. fourth world nations b. second world nations
c. third world nations d. first world nations
ANSWER: d
40. The most frequently noted __________ nations were the United States, Canada, Japan, Great
Britain, Australia, and New Zealand.
a. third world b. second world
c. first world d. fourth world
ANSWER: c
41. Countries with at least a moderate level of economic development and a moderate standard of
living are referred to as:
a. first world nations b. second world nations
c. third world nations d. fourth world nations
ANSWER: b
42. __________ nations included China, North Korea, Vietnam, Cuba, and portions of the former
Soviet Union.
a. Second world b. Fourth world
c. First world d. Third world
ANSWER: a
43. People living in the __________, which comprise the poorest countries, have little or no
industrialization and the lowest standards of living, shortest life expectancies, and highest rates of
mortality.
a. first world b. second world
c. third world d. fourth world
ANSWER: c
44. The __________, named after a U.S. Secretary of State, provided massive sums of money in
direct aid and loans to rebuild the European economic base destroyed during World War II.
a. Albright Plan b. Baker Plan
c. Southern Plan d. Marshall Plan
ANSWER: d
45. Ideas regarding underdevelopment were popularized by __________ in his 1949 inaugural
address. He stated that nations in the Southern Hemisphere were “underdeveloped areas”
because of their low gross national product.
a. President Roosevelt b. President Eisenhower
c. President Truman d. President Kennedy
ANSWER: c
46. The term ________ refers to all of the goods and services produced in a country within a given
year, plus the net income earned outside the country by individuals and corporations.
a. gross deductible income (GDI) b. gross exemption income (GEI)
c. gross national income (GNI) d. gross economic income (GEI)
ANSWER: c
47. The term __________ refers to material well-being, which is measured by the quality of goods and
services that may be purchased by the per capita national income.
a. standard of living b. standard of development
c. standard of the economy d. standard of life
ANSWER: a
48. President Truman believed that an increase in the __________ meant that a nation was moving
toward economic development, which typically included the improved exploitation of natural
resources by industrial development.
a. standard of the economy b. standard of living
c. standard of development d. standard of life
ANSWER: b
49. When an individual is able to purchase more quantities of food, higher quality food, higher quality
housing, or a vehicle, the individual’s __________ is increased.
a. standard of the economy b. standard of living
c. standard of development d. standard of life
ANSWER: b
50. As a result of the 1992 U.N. Conference on Environment and Development in Rio de Janeiro,
terms such as “underdevelopment” have largely been dropped in favor of measurements such as
sustainable development, and economies are now classified by their:
a. material well-being
b. levels of economic development
c. levels of income or their ranking on the Human Development Index
d. standard of living
ANSWER: c
51. The World Bank classifies nations into four economic categories:
a. upper, middle, working, and lower
b. developed, developing, transitioning, underdeveloped
c. postindustrial, industrial, agrarian, horticultural
d. high-income, upper-middle, lower-middle, and low economies
ANSWER: d
52. About __________ of the world's population lives in the thirty-five low-income economies, where
most people engage in agricultural pursuits, reside in nonurban areas, and are impoverished.
a. 25 percent b. 33 percent
c. 50 percent d. 75 percent
ANSWER: c
53. Mariela's country where about 1/3 of the people live in poverty and her family makes about $4,000
annually. While there are diverse array of goods and services available, there are also substantial
economic issues facing most citizens. What kind of economy does Mariela's country have?
a. Poverty-Income b. Low-Income
c. Middle-Income d. High-Income
ANSWER: c
ANSWER: a
ANSWER: b
56. About _________ of the world's population resides in the nations with middle-income economies.
a. one-half b. one-third
c. one-fourth d. one-fifth
ANSWER: b
ANSWER: d
ANSWER: c
59. The World Bank divides middle-income economies into lower-middle income and upper-middle
income. Bolivia, Cameron, China, Ecuador, Egypt, India, Indonesia, Iraq, Pakistan, Thailand, and
Vietnam are classified as:
a. high-income countries b. upper-middle-income countries
c. lower-middle-income countries d. low-income countries
ANSWER: c
60. Although some people have grown wealthy in lower-middle-income nations, many others continue
to live in poverty, defined as _________ per day in purchasing power.
a. $10.00 b. $5.00
c. $.50 d. $1.25
ANSWER: d
ANSWER: a
62. The World Bank divides middle-income economies into lower-middle and upper-middle.
Argentina, Brazil, Mexico, and Turkey are considered nations with __________ economies.
a. upper-middle-income b. high-income
c. lower-middle-income d. low-income
ANSWER: a
63. __________ economies are found in 69 nations, including Portugal, Ireland, Israel, Italy, Norway,
and Germany.
a. Low-income b. Lower-middle-income
c. Upper-middle-income d. High-income
ANSWER: d
64. Nations with __________ continue to dominate the world economy, despite the fact that shifts in
the global marketplace have affected some workers who have found themselves without work due
to capital flight.
a. lower-middle-income economies b. low-income economies
c. high-income economies d. upper-middle-income economies
ANSWER: c
65. ___________ is the movement of jobs and economic resources from one nation to another.
a. Deindustrialization b. Economic mobility
c. Capital flight d. Capital movement
ANSWER: c
66. Capital flight often occurs because transnational corporations become aware of pools of cheap
labor in ___________ nations where workers do not have legal protection or unions to help boost
their wages and improve their work conditions.
a. upper b. higher-middle
c. lower-middle d. lower-income
ANSWER: d
67. A condition in which people do not have the means to secure the most basic necessities of life is
defined as:
a. standard poverty b. absolute poverty
c. relative poverty d. subjective poverty
ANSWER: b
68. The World Bank has defined ___________ as living on less than $1.25 a day.
a. standard poverty b. absolute poverty
c. relative poverty d. subjective poverty
ANSWER: b
69. __________ poverty is measured by comparing personal or household income or expenses with
the cost of buying a given quantity of goods and services.
a. Relative b. Subjective
c. Standard d. Absolute
ANSWER: d
70. _________ exists when people may be able to afford basic necessities but are still unable to
maintain an average standard of living.
a. Relative poverty b. Absolute poverty
c. Subjective poverty d. Standard poverty
ANSWER: a
71. __________ poverty is measured by comparing one person’s income with the incomes of others.
a. Absolute b. Subjective
c. Relative d. Standard
ANSWER: c
72. _________ poverty would be measured by comparing the actual income against the income
earner's expectations and perceptions.
a. Absolute b. Relative
c. Standard d. Subjective
ANSWER: d
73. Defining levels of poverty involves all of the following dimensions EXCEPT for:
a. how many people are poor
b. how far above the poverty line people’s incomes fall
c. how long they have been poor
d. how far below the poverty line people’s incomes fall
ANSWER: b
74. The World Bank uses as its measure of income inequality what is known as the __________,
which ranges from zero (meaning that everyone has the same income) to 100 (meaning that one
person receives all the income).
a. Helmicki coefficient b. Georgia equation
c. Gyro formula d. Gini coefficient
ANSWER: d
75. The United States is ranked 43rd in the world with a Gini coefficient of about __________. On this
measure, the United States fares better than a number of countries in the Middle East.
a. 41 b. 25
c. 78 d. 91
ANSWER: a
76. Using the Gini Index, which of the following countries is the most equitable?
a. Seychelles b. United States
c. China d. Sweden
ANSWER: c
77. In 1990, the United Nations introduced the __________, establishing three new criteria, in addition
to the gross domestic product, for measuring the level of advancement in a country: life
expectancy, education, and living standards.
a. national resource product (NRP) b. personal socialization index (PSI)
c. Gini coefficient d. human development index (HDI)
ANSWER: d
78. The average income per person in lower-income countries has __________ in the past thirty
years.
a. remained the same b. decreased
c. doubled d. barely risen
ANSWER: c
79. According to the United Nations, __________ is the process of “increasing the number of choices
that people have so that they can lead life to its fullest and be able to take action for themselves to
improve their lives.”
a. life expectancy b. life span
c. human development d. global development
ANSWER: c
80. Beginning in 2010, the Human Development Report included a new top category of nations
called:
a. Extreme Development b. Postmodern Development
c. Postindustrialized Development d. Very High Human Development
ANSWER: d
81. According to the Human Development Report, people who live in nations with ___________ can
expect to be better educated, to live longer, and to earn more.
a. Very High Human Development b. Low Human Development
c. Medium Human Development d. High Human Development
ANSWER: a
82. There are three dimensions included in the Human Development Index. Which of the following is
NOT one of these?
a. life expectancy at birth
b. social inclusion
c. mean years of schooling and expected years of schooling
d. gross national income per capita
ANSWER: b
83. The top countries identified as having “Very High Human Development” are:
a. Tanzania and South Africa
b. Niger, Democratic Republic of the Congo, and Zimbabwe
c. Norway, Australia, and the United States
d. Mexico, China, and Paraguay
ANSWER: c
84. The bottom three countries in the “Low Human Development” category are:
a. Tanzania and South Africa
b. Niger, Democratic Republic of the Congo, and Mozambique
c. Norway, Australia, New Zealand, and the United States
d. Mexico, China, and Paraguay
ANSWER: b
85. In order to better understand how the HDI translates into real life, we should consider that a child
that is born in 2010 in Norway has a life expectancy of _________ years compared with a life
expectancy of _________ for a child born in the Democratic Republic of the Congo.
a. 81; 47 b. 80; 70
c. 75; 65 d. 55; 50
ANSWER: a
ANSWER: c
87. The top three countries in the Human Development Index are __________.
a. Norway, Australia, United States b. Mozambique, Democratic Republic of Congo, Niger
c. Sweden, China, England d. Canada, Germany, Japan
ANSWER: a
88. The average life expectancy at birth of people in low-income countries is about __________ years
less than that of people in high-income nations.
a. 15 b. 23
c. 20 d. 35
ANSWER: c
89. A child born in a low-HDI country has a life expectancy of about 59 years, which is __________
years less than in medium-HDI countries and ___________ years less than in very-high-HDI
countries.
a. 5; 15 b. 10; 20
c. 13; 24 d. 1; 2
ANSWER: c
ANSWER: c
91. Which statement most accurately reflects the overall trends in life expectancy for middle- and low-
HDI countries?
a. Life expectancies have been steadily b. Although some advances have been made,
decreasing over the past several major problems still exist.
decades.
c. Life expectancy in middle- and low-HDI d. Severe life expectancy discrepancies exist
countries has risen to equal the rates in because people in middle- and low-HDI
high-HDI countries thanks to medical countries possess inferior cultural practices
technology. regarding health care.
ANSWER: b
92. The worldwide lack of employment for young people, resulting in as many as __________ million
young people unemployed in 2013, has threatened to stall global economic recovery.
a. 12.2
b. 27.4
c. 73.8
d. 149.5
ANSWER: c
93. One major cause of shorter life expectancy in low-income nations is the high __________ rate.
a. crude-birth b. fertility
c. infant mortality d. crude-death
ANSWER: c
94. In 2012 the World Bank announced that plans to cut extreme poverty by __________ before 2015 were ahead of
schedule.
a. 10% b. 15%
c. 50% d. 75%
ANSWER: c
95. Low-income countries typically have higher rates of illness and disease, and they do not have
adequate health care facilities. __________ is a common problem among children, many of whom
are underweight, stunted, and have anemia.
a. Alcohol abuse b. Drug abuse
c. Obesity d. Malnutrition
ANSWER: d
96. Although some gains have been made in reducing the rate of malnourishment in some lower-
income nations, about __________ people around the world are malnourished.
a. one billion b. twenty million
c. one hundred million d. two billion
ANSWER: a
97. Although some gains have been made in reducing the rate of malnourishment in some lower-
income nations, about one billion people around the world are malnourished, and __________
percent of these are in Asia and the Pacific.
a. 53 b. 95
c. 75 d. 63
ANSWER: d
98. Health is defined in the Constitution of the World Health Organization as:
a. a state of complete physical, mental, and social well-being
b. merely the absence of disease or infirmity
c. a state of optimum health
d. a state of complete happiness
ANSWER: a
99. Many people in low-income nations are far from having good health. In fact, about __________
million people die each year from AIDS, diarrhea, malaria, tuberculosis, and other infections and
parasitic illnesses.
a. 5 b. 25
c. 33 d. 75
ANSWER: b
100. The leading killers of children and young adults are __________ which are directly linked to
environmental conditions and poverty.
a. Malnutrition b. vehicle accidents
c. cancers d. infectious and parasitic diseases
ANSWER: d
101. According to the Human Development Report, _________ is fundamental to improving life
chances and reducing both individual and national poverty.
a. wealth b. education
c. power d. prestige
ANSWER: b
102. Although progress has been made, women still receive an inferior education when compared to
their male counterparts which has consequences for the rest of society as higher literacy rates are
associated with __________.
a. decreases in fertility b. earlier age of marriage
c. longer life spans d. less religious extremism
ANSWER: a
103. There has been progress in youth literacy rates with _________ percent literacy in 63 of the 104
countries with available data.
a. 50 b. 95
c. 80 d. 65
ANSWER: b
104. Women in the poorest nations have a literacy rate of _________ percent, as compared to 64.5
percent for men. Literacy is crucial for women because it has been closely linked to decreases in
fertility, improved child health, and increased earnings potential.
a. 55.8 b. 67
c. 45.9 d. 90
ANSWER: c
105. The gap between some richer and middle- or lower-income nations has __________ for life
expectancy, adult literacy, and daily calorie supply.
a. continued to widen
b. narrowed significantly
c. remained the same for three decades
d. narrowed only within the past decade
ANSWER: b
106. The education of __________ is of primary importance in the future if global inequality is to be
reduced.
a. the young b. men
c. women d. the elderly
ANSWER: c
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107. The __________ was introduced by the United Nations to help identify overlapping deprivations
that are suffered by households in health, education, and living standards. These three dimensions
are subdivided into ten indicators.
a. Gross National Product b. Gini Coefficient
c. Human Development Index d. Multidimensional Poverty Index
ANSWER: d
108. The most widely known development theory is __________, which is a perspective that links
global inequality to different levels of economic development and suggests that low-income
economies can move to middle- and high-income economies by achieving self-sustained
economic growth.
a. dependency theory
b. world systems theory
c. modernization theory
d. the new international division of labor theory
ANSWER: c
109. The number of hours that people work at their jobs each week is one measure of the extent to
which individuals subscribe to the work ethic, which is a core value widely believed to be of great
significance in the __________ process.
a. urbanization b. modernization
c. dependency d. capitalization
ANSWER: b
110. Walt Rostow, economic advisor to U.S. President Kennedy, suggested that all countries go
through four stages of economic development. The first stage is the __________, in which very
little social change takes place, and people do not think much about changing their current
circumstances.
a. traditional stage b. high mass consumption stage
c. take-off stage d. technological maturity stage
ANSWER: a
111. According to Walt Rostow, economic advisor to U.S. President Kennedy, all countries go through
four stages of economic development. The second stage is the __________ stage, which is a
period of economic growth accompanied by a growing belief in individualism, competition, and
achievement.
a. traditional b. take-off
c. technological maturity d. high mass consumption
ANSWER: b
112. Walt Rostow, economic advisor to U.S. President Kennedy, suggested that all countries go
through four stages of economic development. In the third stage, referred to as the __________,
the country will reinvest in new industries and embrace the beliefs, values, and social institutions of
the high-income, developed nations.
a. high mass consumption stage b. traditional stage
c. take-off stage d. technological maturity stage
ANSWER: d
113. __________ is based on a marketoriented perspective that assumes that “pure” capitalism is
good and that the best economic outcomes occur when governments follow the policy of laissez-
faire (handsoff) business, giving capitalists the opportunity to make the “best” economic
decisions.
a. World systems theory
b. Dependency theory
c. Modernization theory
d. New international division of labor theory
ANSWER: c
114. The __________ states that global poverty can at least partially be attributed to the fact that the
low-income countries have been exploited by the high-income countries.
a. new international division of labor theory
b. dependency theory
c. world systems theory
d. modernization theory
ANSWER: b
115. The _________ theory suggests that what exists under capitalism is a truly global system, held
together by economic ties.
a. dependency b. new international division of labor
c. world systems d. modernization
ANSWER: c
116. According to world systems theory, most low-income countries in Africa and South America are
__________ nations that are dependent on other nations for capital, have little or no
industrialization, and have uneven patterns of urbanization.
a. peripheral b. core
c. semiperipheral d. tertiary
ANSWER: a
117. Transnational corporations have built maquiladora plants so that goods can be assembled by low-
wage workers and then brought into the United States to keep production costs down. These
maquiladora plants are located in what country?
a. Haiti b. Cuba
c. Puerto Rico d. Mexico
ANSWER: d
118. According to the ___________ theory, commodity production is being split into fragments that can
be assigned to whichever part of the world can provide the most profitable combination of capital
and labor.
a. world systems b. new international division of labor
c. dependency d. modernization
ANSWER: b
119. Based on the new international division of labor theory, __________ chains is the term used to
describe industries in which transnational corporations play a central part in controlling the
production process.
a. producer-driven commodity b. buyer-driven commodity
c. individually-driven commodity d. transnational-driven commodity
ANSWER: a
120. Industries that produce automobiles, computers, and other capital- and technology-intensive
products are typically __________ chains.
a. buyer-driven commodity b. transnational-driven commodity
c. producer-driven commodity d. individually-driven commodity
ANSWER: c
121. According to the new international division of labor theory, “__________” is the term used to refer
to industries in which large retailers, brand-name merchandisers, and trading companies set up
decentralized production networks in various middle- and low-income countries.
a. transnational-driven commodity chains
b. buyer-driven commodity chains
c. individually-driven commodity chains
d. producer-driven commodity chains
ANSWER: b
122. In the future, continued population growth, urbanization, environmental degradation, and violent
conflict threaten even the meager living conditions of those residing in __________ nations.
a. low-income economy b. middle-income economy
c. upper-middle economy d. upper economy
ANSWER: a
ANSWER: c
124. Across the world just over __________ million children are engaged in child labor.
a. 10
b. 50
c. 100
d. 150
ANSWER: d
125. Erin makes around $15,000 per year. Until recently, she worked in the manufacturing sector at a factory.
However, it recently closed and relocated to a country with lower wages. Erin likely lives in a
__________economy.
a. low-income
b. lower-middle income
c. upper-middle income
d. high-income
ANSWER: d
ANSWER: Global stratification refers to the unequal distribution of wealth, power, and prestige on a
global basis, resulting in people having vastly different lifestyles and life chances both
within and among the nations of the world. The world is divided into unequal segments
characterized by extreme differences in wealth and poverty. High-income countries are
nations characterized by highly industrialized economies, technologically advanced
industrial, administrative, and service occupations; and relatively high levels of national
and per capita (per person) income. In contrast, middle-income countries are nations
with industrializing economies, particularly in urban areas and moderate levels of
national and personal income. Low-income countries are primarily agrarian nations with
little industrialization and low levels of national and personal income. Just as the
differences between the richest and poorest people in the world have increased, the gap
in global income differences between rich and poor countries has continued to widen
over the past fifty years. Social inequality, which may result from factors such as
discrimination based on race, ethnicity, gender, or religion, exacerbates problems of
economic inequality. Social inequality and economic inequality are the main causes of
the poverty of a nation; therefore, a society must have greater social equality among its
citizens as a precondition for the entire country getting out of poverty.
127. Describe the “three worlds” approach that is used to classify nations of the world.
ANSWER: After World War II, the “three worlds” approach was introduced by social analysts to
distinguish among nations on the basis of their levels of economic development and the
standard of living of their citizens. First World nations were said to consist of the rich,
industrialized nations that primarily had capitalist economic systems and democratic
political systems. The most frequently noted First World nations were the United States,
Canada, Japan, Great Britain, Australia, and New Zealand. Second World nations were
said to be countries with at least a moderate level of economic development and a
moderate standard of living. These nations included China, North Korea, Vietnam,
Cuba, and portions of the former Soviet Union. Third World nations are the poorest
countries, with little or no industrialization and the lowest standards of living, shortest life
expectancies, and highest rates of mortality.
ANSWER: Following World War II, the concepts of underdevelopment and underdeveloped nations
emerged out of the Marshall Plan, which provided massive sums of money in direct aid
and loans to rebuild the European economic base destroyed in World War II. Given the
Marshall Plan’s success in rebuilding much of Europe, U.S. political leaders decided
that the Southern Hemisphere nations that had recently been released from European
colonialism could also benefit from a massive financial infusion and rapid economic
development. Leaders of the developed nations argued that urgent problems such as
poverty, disease, and famine could be reduced through the transfer of finance,
technology, and experience from the developed nations to lesser-developed countries.
From this viewpoint, economic development is the primary way to solve the poverty
problem. Ideas regarding underdevelopment were popularized by President Harry S.
Truman in his 1949 inaugural address. According to Truman, the nations in the Southern
Hemisphere were “underdeveloped areas” because of their low gross national product,
the gross national income (GNI)—a term that refers to all the goods and services
produced in a country in a given year, plus the net income earned outside the country by
individuals or corporations. If nations could increase their GNI, then social and economic
inequality among the citizens within the country could also be reduced. Accordingly,
Truman believed that it was necessary to assist the people of economically
underdeveloped areas to raise their standard of living, by which he meant material well-
being that can be measured by the quality of goods and services that may be purchased
by the per capita national income. After several decades of economic development
fostered by organizations such as the United Nations and the World Bank, it became
apparent by the 1970s that improving a country’s GNI did not tend to reduce the poverty
of the poorest people in that country. In fact, global poverty and inequality were
increasing, and the initial optimism of a speedy end to underdevelopment faded.
129. Explain the levels of development approach that is used for describing global stratification.
ANSWER: Following World War II, the concepts of underdevelopment and underdeveloped nations
emerged out of the Marshall Plan, which provided massive sums of money in direct aid
and loans to rebuild the European economic base destroyed in World War II.
Given the Marshall Plan’s success in rebuilding much of Europe, U.S. political leaders decided that the
Southern Hemisphere nations that had recently been released from European colonialism could also benefit
from a massive financial infusion and rapid economic development.
Leaders of the developed nations argued that urgent problems such as poverty, disease, and famine could be
reduced through the transfer of finance, technology, and experience from the developed nations to lesser-
developed countries. From this viewpoint, economic development is the primary way to solve the poverty
problem. Ideas regarding underdevelopment were popularized by President Harry S. Truman in his 1949
inaugural address. According to Truman, the nations in the Southern Hemisphere were “underdeveloped
areas” because of their low gross national product, the gross national income (GNI)—a term that refers to all
the goods and services produced in a country in a given year, plus the net income earned outside the country by
individuals or corporations. If nations could increase their GNI, then social and economic inequality among the
citizens within the country could also be reduced. Accordingly, Truman believed that it was necessary to assist
the people of economically underdeveloped areas to raise their standard of living, by which he meant material
well-being that can be measured by the quality of goods and services that may be purchased by the per capita
national income. After several decades of economic development fostered by organizations such as the United
Nations and the World Bank, it became apparent by the 1970s that improving a country’s GNI did not tend to
reduce the poverty of the poorest people in that country. In fact, global poverty and inequality were increasing,
and the initial optimism of a speedy end to underdevelopment faded.
ANSWER: About half of the world’s population lives in the thirtynine lowincome economies, where
most people engage in agricultural pursuits, reside in nonurban areas, and are
impoverished. The World Bank identifies low-income economies as having a GNI per
capita of $995 or less in 2009. Low-income economies are primarily found in countries
in Asia and Africa, where half of the world’s population resides. In some of these nations,
civil war is both a cause and a product of the poverty in which much of the population
lives. Among those most affected by poverty in low-income economies are women and
children. Many poor women worldwide also do not have access to commercial credit
and have been trained only in traditionally female skills that produce wages. These
factors have contributed to the global feminization of poverty, whereby women around
the world tend to be more impoverished than men.
ANSWER: About onethird of the world’s population resides in nations with middleincome
economies. The World Bank divides middle-income economies into lower-middle-
income ($996 to $3,945) and upper-middle-income ($3,946 - $12,195). According to
the World Bank, some nations have been more successful than others in implementing
key elements of change and bringing about a higher standard of living for their citizens.
Among other factors, high rates of inflation, the growing gap between the rich and the
poor, low life-expectancy rates, and homeless children have been visible signs of
problems in the transition toward a free market economy in countries such as the United
States. As compared with lower-middle-income economies, nations having upper-
middle-income economies typically have a somewhat higher standard of living and
export diverse goods and services, ranging from manufactured goods to raw materials
and fuels. As middle-income nations have been required to make payments on their
debts, the requisite structural adjustments have necessitated that the countries make
spending cuts in areas that formerly helped some of the poor, including subsidized food,
education, and health care.
132. Describe high-income economies.
ANSWER: The World Bank states that high-income economies have a GNI per capita of more than
$12,196 in 2009. According to the World Bank, people in high-income economies
typically have a higher standard of living and continue to dominant the world economy,
despite the fact that some workers found themselves without work due to capital flight—
movement of jobs and economic resources from one nation to another—and
deindustrialization—closing plants and factories because of their obsolescence or that
workers from other nations are being hired to do the work more cheaply.
133. In relation to measuring global wealth and poverty, distinguish among absolute, relative, and
subjective poverty.
ANSWER: According to social scientists, defining poverty involves more than comparisons of
personal or household income: It also involves social judgments made by researchers.
From this point of view, absolute poverty —previously defined as a condition in which people do not have the
means to secure the most basic necessities of life—would be measured by comparing personal or household
income or expenses with the cost of buying a given quantity of goods and services. The World Bank has defined
absolute poverty as living on less than a dollar a day. Similarly, relative poverty—which exists when people may
be able to afford basic necessities but are still unable to maintain an average standard of living— would be
measured by comparing one person’s income with the incomes of others. Finally, subjective poverty would be
measured by comparing the actual income against the income earner’s expectations and perceptions. Defining
levels of poverty involves several dimensions: (1) how many people are poor, (2) how far below the poverty line
people’s incomes fall, and (3) how long they have poor (is the poverty temporary or long term?)
134. Identify and explain the use of the Gini coefficient and global quality of life issues.
ANSWER: The World Bank uses as its measure of income inequality what is known as the Gini
coefficient, which ranges from zero (meaning that everyone has the same income) to
100 (one person receives all the income). Using this measure, the World Bank has
concluded that inequality has increased in nations such as Bulgaria, the Baltic countries,
and the Slavic countries of the former Soviet Union to levels similar to those in the less-
equal industrial market economies, such as the United States. Stark contrasts also exist
in countries such as India, where abject poverty still exists side by side with lavish
opulence in Calcutta. Similar disparities between the rich and the poor can be seen in
other nations. For example, in Haiti, starvation and disease are a way of life for most
inhabitants. As the poorest nation in the Western Hemisphere, Haiti’s ability to feed
people has been further reduced by the 2010 earthquake.
135. Discuss global poverty and its effects upon human development issues of life expectancy, health,
and education.
ANSWER: In 1990, the United Nations Development Program introduced the Human Development
Index (HDI), establishing three new criteria—in addition to GDP—for measuring the level
of development in a country: life expectancy, education, and living standards.
According to the United Nations, human development is the process of “expanding choices that people have in
life, to lead a life to its full potential and in dignity, through expanding capabilities and through people taking
action themselves to improve their lives.” Regarding life expectancy, on the plus side, average life expectancy
has increased by about a third in the past three decades and is now more than 70 years in 87 countries. On a
less positive note, the average life expectancy at birth of people in middle-income countries remains about 12
years less than that of people in high-income countries. Moreover, the life expectancy of people in low-income
nations is as much as 30 years less than that of people in high-income nations. One major cause of shorter life
expectancy in lower-income nations is the high rate of infant mortality. The infant mortality rate (deaths per
thousand live births) is more than eight times higher in low-income countries than in high-income countries.
Low-income countries typically have higher rates of illness and disease, and they do not have adequate health
care facilities. Malnutrition is a common problem among children, many of whom are underweight, stunted, and
have anemia—a nutritional deficiency with serious consequences for child mortality.
Health is defined in the Constitution of the World Health Organization as “a state of complete physical, mental
and social well-being and not merely the absence of disease or infirmity. Many people in low-income nations
are far from having physical, mental and social well-being. In fact, many die each year from diarrhea, malaria,
tuberculosis, and other infectious and parasitic illnesses. According to the Human Development Report,
education is fundamental to reducing both individual and national poverty. As a result, school enrollment is
used as one measure of human development. The United Nations Educational, Scientific and Cultural
Organization (UNESCO) defines a literate person as “someone who can, with understanding, both read and
write a short, simple statement on their everyday life.” The adult literacy rate in the lowincome countries is
about half that of the high-income countries, and for women the rate is even lower. Women constitute about
two-thirds of those who are illiterate. Literacy is crucial for women because it has been closely linked to
decreases in fertility, improved child health, and increased earnings potential. The gap between the poorest
nations and the middle-income nations has continued to widen. Poverty, food shortages, hunger, and rapidly
growing populations are pressing problems for at least two billion people, most of them women and children
living a state of absolute poverty.
ANSWER: Global wealth and poverty are linked to the level of industrialization and economic
development in a given society. Although the process by which a nation industrializes
may vary somewhat, industrialization almost inevitably brings with it a higher standard of
living in a nation and some degree of social mobility for individual participants in the
society. The most widely known development theory is modernization theory—a
perspective that links global inequality to different levels of economic development and
suggests that low-income economies can move to middle- and high-income economies
by achieving self-sustained economic growth. According to modernization theory, the
low-income, less-developed nations can improve their standard of living only with a
period of intensive economic growth and accompanying changes in people’s beliefs,
values, and attitudes toward work. As a result of modernization, the values of people in
developing countries supposedly become more similar to those of people in high-
income nations. The number of hours that people work at their jobs each week is one
measure of the extent to which individuals subscribe to the work ethic, a core value
widely believed to be of great significance in the modernization process.
137. Summarize Walt Rostow’s perspective on global inequality.
ANSWER: Perhaps the best-known modernization theory is that of Walt W. Rostow, who, as an
economic advisor to U.S. President John F. Kennedy, was highly instrumental in shaping
U.S. foreign policy toward Latin America in the 1960s. To Rostow, one of the largest
barriers to development in low-income nations was the traditional cultural values held by
people, particularly beliefs that are fatalistic, such as viewing extreme hardship and
economic deprivation as inevitable and unavoidable facts of life. In cases of fatalism,
people do not see any need to work in order to improve their lot in life. Rostow
suggested that all countries go through four stages of economic development. The first
stage is the traditional stage, in which very little social change takes place, and people
do not think much about changing their current circumstances. According to Rostow,
societies in this stage are slow to change because the people hold a fatalistic value
system, do not subscribe to the work ethic, and save very little money. The second stage
is the takeoff stage—a period of economic growth accompanied by a growing belief in
individualism, competition, and achievement. During this stage, people start to look
toward the future, to save and invest money, and to discard traditional values. According
to Rostow’s modernization theory, the development of capitalism is essential for the
transformation from a traditional, simple society to a modern, complex one.
In the third stage, the country moves toward technological maturity. At this point, the country will improve its
technology, reinvest in new industries, and embrace the beliefs, values, and social institutions of the high-
income, developed nations. In the fourth stage, the country reaches the phase of high mass consumption and a
correspondingly high standard of living.
ANSWER: The dependency theory states that global poverty can at least partially be attributed to
the fact that the low-income countries have been exploited by the high-income countries.
Dependency theorists see the greed of the rich countries as a source of increasing
impoverishment of the poorer nations and their people. Dependency theory disputes the
notion of the development approach, and modernization theory specifically, that
economic growth is the key to meeting important human needs in societies. In contrast,
the poorer nations are trapped in a cycle of structural dependency on the richer nations
due to their need for infusions of foreign capital and external markers for their raw
materials, making it impossible for the poorer nations to pursue their own economic and
human development agendas. Dependency theory has been most often applied to the
newly industrializing countries (NICs) of Latin America. Dependency theory makes a
positive contribution to our understanding of global poverty by noting that
“underdevelopment” is not necessarily the cause of inequality. Rather, it points out that
exploitation not only of one country by another, but of countries by transnational
corporations, may limit or retard economic growth and human developments in some
nations.
139. Summarize sociologist Immanuel Wallerstein’s world systems theory of global inequality.
ANSWER: World systems theory suggests that what exists under capitalism is a truly global system
that is held together by economic ties. From this approach, global inequality does not
emerge solely as a result of the exploitation of one country by another. Instead, economic
domination involves a complex world system in which the industrialized, high-income
nations benefit from other nations and exploit their citizens. This theory is most closely
associated with sociologist Immanuel Wallerstein, who believed that a country’s mode of
incorporation into the capitalistic work economy is the key feature in determining how
economic development takes place in that nation.
According to world systems theory, the capitalist world economy is a global system divided into a hierarchy of
three major types of nations—core, semiperipheral, and peripheral—in which upward or downward mobility is
conditioned by the resources and obstacles that characterize the international system. Core nations are
dominant capitalist centers characterized by high levels of industrialization and urbanization. Core nations such
as the United States, Japan, and Germany possess most of the world’s capital and technology. Even more
importantly for their position of domination, they exert massive control over world trade and economic
agreements across national boundaries. Semiperipheral nations are more developed than peripheral nations
but less developed than core nations. Nations in this category typically provide labor and raw materials to core
nations within the world system. These nations constitute a midpoint between the core and peripheral nations
that promotes the stability and legitimacy of the three-tiered world economy. These nations include South Korea
and Taiwan in East Asia, Mexico and Brazil in Latin America, India in South Asia, and Nigeria and South Africa in
Africa. Most lowincome countries in Africa, South America, and the Caribbean are peripheral nations—nations
that are dependent on core nations for capital, have little or no industrialization (other than what may be brought
in by core nations) and have uneven patterns of urbanization. According to Wallerstein, the wealthy in peripheral
nations benefit from the labor of poor workers and from their own economic relations with core nation
capitalists, whom they uphold in order to maintain their own wealth and position.
140. Explain the new international division of labor theory and compare the use of global commodity
chains.
ANSWER: According to the new international division of labor theory, commodity production is split
into fragments that can be assigned to whichever part of the world can provide the most
profitable combination of capital and labor. Consequently, the new international division
of labor has changed the pattern of geographic specialization between countries,
whereby high-income countries have now become dependent on low-income countries
for labor. The low-income countries provide transnational corporations with a situation in
which they can pay lower wages and taxes and face fewer regulations regarding
workplace conditions and environmental protection. Overall, a global manufacturing
system has emerged in which transnational corporations establish labor-intensive,
assembly-oriented export production, ranging from textiles and clothing to
technologically sophisticated exports such as computers, in middle- and lower-income
nations.
The global nature of these activities has been referred to as global commodity chains, a complex pattern of
international labor and production processes that result in a finished commodity ready for sale in the
marketplace. Some commodity chains are producer-driven whereas others are buyer-driven. Producer-driven
commodity chains is the term used to describe industries in which transnational corporations play a central
part in controlling the production process. Industries that produce automobiles, computers, and other capital-
and technology-intensive products are typically producer-driven. In contrast, buyer-driven commodity chains is
the term used to refer to industries in which large retailers, brand-name merchandisers, and trading
companies set up decentralized production networks in various middle- and low-income countries. This type of
chain is most common in labor-intensive, consumer-goods industries such as toys, garments, and footwear.
Athletic footwear companies such as Nike and Reebok and clothing companies like The Gap and Liz Claiborne
are examples of the buyer-driven model. Since these products tend to be labor intensive at the manufacturing
stage, the typical factory system is very competitive and globally decentralized. Workers in buyer-driven
commodity chains are often exploited by low wages, long hours, and poor working conditions.
Essay
141. Summarize wealth and poverty in global perspective.
ANSWER: The following are suggested areas for students to address in their essays:
Define “global stratification”
Relate industrialization with low-income countries
Relate industrialization with middle-income countries
Relate industrialization with high-income countries
Provide a personal perspective on wealth and poverty in the United States
Encourage students to provide any personal experience with low-income and/or middle-income countries in
their responses
ANSWER: The following are suggested areas for students to address in their essays:
Describe each of the worlds in the “Three Worlds” approach
Define “gross national income” (GNI) and explain how it affects development
Encourage students to provide any personal experience with any of the “Worlds” in their responses
ANSWER: The following are suggested areas for students to address in their essays:
Define “dependency theory”
Identify any positive aspects of the dependency theory
Identify any negative aspects of the dependency theory
Encourage students to include any personal views on the dependency theory in their responses
149. Drawing on social theory, explain your personal perspective on world hunger and poverty and
devise a plan that would reduce poverty and hunger.
ANSWER:
The following are suggested areas for students to address in their essays:
Identify what other resources you would need to implement your plan
Encourage students to provide personal experience and/or views on whether or not it is possible to
reduce/alleviate world hunger and poverty
150. Describe some of the important ways that international aid has helped to fight global poverty and
disease.
ANSWER: The following are suggested areas for students to address in their essays:
Explain how it will be possible to assist the continuing growing numbers of poor people around the world
Describe where the sources of financial assistance will come from to continue international aid
Explain the importance of growing technology and worldwide economic growth
Encourage students to explain how they will help to fight global poverty and disease
Mr. Scratchetty-Claw
Nibbles had put the ring around his neck again for
safe keeping, but when he showed it to a footman in
the palace hall, he took Nibbles and Teenie Weenie
at once to the Prince, who was sitting in a lovely rose
arbor in the garden.