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1. {
Factor Market
Household sells in the factor market
Firm buys in the factor market
• Examples:
• Firms buy resources
• Firms hire additional workers
• Households receive income
2. {
Product Market
Household buy in the product market
Firm sell in the product market
• Examples:
• Households buy goods and services
• Firms sell goods and services
3. {
Democratic Capitalism
Personal-profit motives create economic growth
Government should hold to the principle of laissez-
faire
A blend of political and economic ideology whose tenets
include the private ownership of property, the profit motive, a
free market economy, and competition. The function of
government in this system is to ensure that the economic game
is played fairly.
4. {
Democratic Socialism
Economic planning is an extension of political
decision making
Individual economic security is a responsibility
of elected officials
Property is best utilized if regulated by the
state
A blend of political and economic ideology whose chief
assumption is that participation in political decision making
should be extended to economic decision making. The
function of the government in this system is to control and
guide the economy for the benefit of the voters who elected
it.
5. {
Socialism
Where capital is publicly owned
Like democracy is a philosophy and a political
system in addition to being an ideology, is capable of
coexisting with capitalism. Socialism is also subject
to a vast variety of definitions, has throughout
history reflected a large number of visions, and has
assumed a multiplicity of roles. In general, socialism
refers to an economic concept, but democratic
socialism is an ideology that rests on both economic
and political assumptions.
6. {
Democracy
An ideology, philosophy, theory, and political
system assuming the basic value of the individual,
as well as his or her rationality, morality, equality,
and possession of specific rights.
7. {
Communism
An economic and political system whose goals are
total government control of the economy and total
income redistribution with the ultimate aim of a
classless society, is based on one of the most
misunderstood and feared ideologies.
8. {
Conflict Theory
A theory of stratification according to which the
natural conditions of society are constant change
and conflict resulting from class struggles.
Inequality is the product of such conflict, as one
group is victorious over others and asserts itself over
the rest of society.
Examples:
The state dominates and exploits through the use of
social institutions
The state serves the upper classes
The state will eventually cease to exist
Rousseau and Marx
9. {
Functionalist Theory
A theory in which social inequality is viewed as
inevitable because society must use rewards to
ensure that essential tasks are performed. The
natural conditions of society are thought to be order
and stability (equilibrium).
Examples:
The state is necessary to maintain social order
The state is created to end a "state of nature“
Thomas Hobbes
10. {
Theory's of Human Development
Psychosexual Theory (Freud)
Cognitive Theory (Piaget)
Psychosocial Theory (Erikson)
Stages of Moral Development (Kohlburg)
11. {
Sigmund Freud
Personality development is inseparably linked
to biological drives
Five psychosexual stages:
1.oral, in the first year of life;
2.anal, in the second and third years;
3.phallic, or Oedipal, in the third through fifth
year;
4.latency, from age five to the beginning of
adolescence;
5.genital, during puberty and into adulthood.
12. {
Jean Piaget
Development of rational thought
Moral values and intellectual skills aid in the
interpretation of individual situations
Different levels of maturity result in different
systems of moral values
4 stages of development:
1. Sensory – motor birth – 2yrs
2. Pre-Operational 2-7yrs
3. Concrete Operational 7-11years
4. Formal Operational 11yrs & up
13. {
Erik Erikson
Socialization is a lifelong process
8 stages that represent different periods in a
child's development as a person
14. {
Lawrence Kohlberg
Moral reasoning
3 levels of moral development:
All children reach every level as they mature, but
not all children absorb it, so not all progress to the
next level equally equipped.
Young children define right and wrong in terms of
obedience and disobedience to authority, their
concern being the consequences of an act and not the
intention behind it; they have a preconventional
morality.
Adolescents adopt a morality based on socially
approved values, trusting in a higher authority to
define right and wrong; they are at a conventional
level of development.
Physically mature people are capable of judging and
creating their own behavior
Morality is a cultural universal
15. {
George Mead
Symbolic Interaction (theory name)
A school of thought whose theories center around
the interrelationship of mind, self, and society and
include the belief that society and the individual
give rise to each other through symbolic
interaction.
Generalized other - The individual’s perception or
awareness of social norms; learning to take the role
of all others with whom one interacts or of society
as a whole.
Self - The individual’s self-conception or self-
awareness.
Mind - The abstract whole of a person’s ideas.
Significant others - Important people in an
individual’s life whose roles are initially imitated.
16. {
Charles Cooley
Looking-glass self - The process of personality
formation in which an individual’s self-image
emerges as a result of perceiving the observed
attitudes of others. The process is call Looking-glass
self because it resembles looking into an imaginary
mirror that reflects back to the looker his or her
image as others see it (the others, of course, are
society in general; thus, society is internalized by the
individual). If the reflected image is good (as society
says it should be), the person is satisfied. If the
image is bad, the person feels ashamed and
dissatisfied with himself or herself.
17. {
Thomas Hobbs
The state emerged as a result of a “social
contract” made by the people to end their
existence in a “state of nature” in which life
was “solitary, poor, nasty, brutish, and short.”
Humans will never coexist peacefully in the
state of nature
18. {
Jean-Jacques Rousseau
The emergence of the state people lived as
“noble savages” in peace and harmony.
Greed does not exist in state of nature
Sate of nature is a hypothetical period of time
before civilization
19. {
Karl Marx
Founder of Sociology
The state would cease to exist only when the
last stage of the evolution of societies was
reached. In the classless societies that would
follow communism, the state would “wither
away,” because in such societies there would no
longer be any need to safeguard the interests of
any one group.
Thought that all but the most primitive
societies consisted of at least two classes
21. {
Max Weber
Believed that class is closely related to life
chances
Influenced social theory, social research and the
discipline of sociology
22. {
Monopoly/Oligopoly
While one firm produces the entire market supply of
a product in a monopoly, a few firms produce most
of the market supply of a product in an oligopoly
23. {
Labor Markets
Internal labor markets - exist within a firm if
the firm fills higher level positions in the firm
primarily by promotion from within the firm
• Examples:
• this reduces hiring and training costs,
• it improves employee morale and motivation, and
• it reduces the effect of uncertainty (since the firm has
already observed worker productivity.
• reduction in hiring and training costs
24. {
Labor Markets
Primary labor markets - characterized by high
wages and stable employment relationships.
• Examples of jobs:
• accountant, lawyer, teacher, carpenter, and plumber
25. {
Labor Markets
Secondary labor markets - receive low wages
and experience unstable employment
relationships.
• Examples of jobs:
• Workers in fast-food restaurants, gas station
attendants, dishwashers, janitors, etc.
26. {
Sectors of the Economy
Primary Sector - deals with the extraction and
processing of raw materials and includes such
activities as agriculture, fishing, mining, and
forestry
Secondary Sector - is concerned with
manufacturing and constructing, or turning
raw materials into finished products, such as
producing automobiles, building homes, or
packaging foods
Tertiary Sector - involves services, such as
repairing automobiles, remodeling homes,
providing education, or healing the sick
members of a society
30. {
Anthropology
The study of the development of humans by
combining natural science, biology and information
gathered from social science to uncover the
relationships between human biological traits and
traits acquired socially, that is by living groups.
Anthropology is divided into two
disciplines, physical anthropology and cultural
anthropology. Physical anthropology deals with
traits that appear in specific populations and with
characteristics that populations develop as a result
of adaptation to particular environments. Cultural
anthropology concerns itself with all facets of
human culture: kinship forms, linguistics, material
artifacts, economic structures, music, and folklore.
31. {
Economics
A human institution and is a discipline that
studies the system that societies construct to
help them in this endeavor. Economics
attempts to explain social processes (such as
“who gets what and why”), the origins of some
social problems (such as poverty), the
importance of work as a source of identity,
occupational status, increases or decreases in
the standard of living, the effects of rising
expectations, and so on.
32. {
Sociology
The study of human groups in interaction, or
the scientific study of human society and
human behavior group.
34. {
Geography
A natural science concerned with the planet we
inhabit such as the land, bodies of
water, mountains, valleys, types of vegetation
and animal habitats.
35. {
History
Is not really considered as a social science
because it is to record human events for future
generations.
36. {
Sample Survey
Collect data; have sample fill out
questionnaires; conduct personal interviews;
obtain factual information; probe attitudes;
establish relationships among variables. All
researchers use surveys.
37. {
Case Study
Study of a single case
Gain confidence of members; obtain
biographies of members; learn each member’s
views; establish hypothesis or relationships
that can be tested by other means.
38. {
Experiment
Subjects undergo a number of tests, and their
responses are recorded. Researchers control or
hold constant one variable and systematically
observe or measure the results.
39. {
Research Method /
Discipline
Sample Survey / Sociology & Political Science
Case Study / Anthropology & Sociology
Experiment / Phycology
Participant Observation / Sociology
40. {
Microeconomics
The study of individual behavior in the
economy, as well as of specific markets. It deals
with the details, the behavior of individual
components of the economy, such as, for
instance, what determines the price of a single
product or why single consumers or firms act
as they do.
41. {
Macroeconomics
Deals with the national economy as a
whole, that is, with the large picture, or the
forest. In analyzing the economy in macro
terms, we look at such national goals as
maintaining full employment, limiting
inflation, stabilizing the economy, and pursuing
economic growth; we look at
output, income, price level, foreign trade, and
government policies. In short, we want to know
how the economy as a unit is working, and we
want to see how to improve it.
43. {
Modern Nation-State
World War I influence the development of the
modern nation-state by Woodrow Wilson's
advocacy of national self-determination
encouraged movements that undermined
traditional empires.
45. {
Democratic Socialism
(State Ownership)
Economic planning is an extension of political
decision making.
Individual economic security is a responsibility
of elected officials.
Property is best utilized if regulated by the
state.
49. {
Mercator Projection
To display the surface of the Earth with few
distortions in size
Same shape but distorts size
50. {
Conformal Map Projections
Maintains angular relationships and accurate
shapes over small areas.
Type of Mercator Projection Map
Examples: Navigation & meteorological charts
56. {
Social Stratification
A process existing in all but the simplest
societies whereby members rank one another
and themselves hierarchically with respect to
the amount of desirables
(wealth, prestige, power) they possess.
Ranking:
1.wealth, or how much of the societal resources
a person owns;
2.prestige, or the degree of honor a person’s
position in society evokes; and
3.power, or the degree to which a person can
direct others as a result of the preceding factors.
57. {
Nation State
Is a state, or country, that has defined borders and
territory. It is additionally a country in which a
nation of principally the same type of people
exists, organized by either race or cultural
background. In the nation-state, generally, everyone
would speak the same language, probably practice
the same or similar types of religion, and share a set
of cultural, “national,” values.
58. {
NGO’s
(Nongovernmental
Organizations)
Are characterized by having headquarters in
one country but operations in two or more
countries; they perform their functions across
national borders. Finally, another kind of NGO
consists of multinational corporations, large
firms that control plants and offices in many
countries, in which they sell their goods and
services.
59. {
City-State
Political system consisting of an independent
city with Sovereignty over a fixed surrounding
area for which it served as leader of religious,
political, economic and culture life.
60. {
Monetary Policy
Deals with the production distribution and
rules governing the use of money supply
62. {
Social Science
Discipline evolved from social philosophy
Studies how people behave in the social world
that is of their own making
Does not study the physical world into which
we are born
63. {
Bureaucracy
A group of non-elected officials within a
government or other institutions that
implements the rules, laws, ideas and functions
of their institution.
64. {
Price System
Decides which goods and services are going to
be produced. If consumers are willing to pay a
price, producers are willing to make the item.
The price system acts as a mechanism of social
control—it controls what will be produced in
the society.
65. {
The Public Interest:
Socioeconomic Goals
1.Full employment
2.A desirable mix of economic output
3.High as well as equitably distributed incomes
4.Reasonable price stability
5.Adequate economic growth
66. {
Equilibrium
The price and quantity at which both buyers
and sellers are compatible—the quantity
supplied equals the price buyers are willing to
pay.
67. {
Full Employment
The concept of full employment refers
specifically to the ability of the economy to
utilize all individuals who are ready and
willing to work.
A low rate of unemployment, between 4 and 5
percent.
68. {
Gross Domestic Product
Consists of the total output of goods and services
produced within the limits of the United States, by
American or foreign-supplied resources, as well as
all income earned. In other words, the cars produced
by a Japanese-owned Honda plant in the United
States would be counted in the American GDP, but
the profits from an American-owned Ford plant in
France would be excluded from it.
69. {
Gross National Product
The total output produced by the factors of
production (land, labor, capital) and
entrepreneurship of Americans, regardless of
where these resources are located—in the
United States or abroad.
70. {
The Federal Reserve
The role of the Federal Reserve Bank (called
“the Fed” for short) is that of principal
regulator of the money supply.
71. {
Multiplier Effect
Government spending that produces more
income, results in higher consumption
expenditures, and translates into a higher
aggregate demand.
72. {
Budget Surplus
A surplus that occurs when the government’s
revenues are greater than its expenditures.