Midterm (Modules 7 - 8)

Question 1

Modernization Theory

Answer 1

It takes many years for a nation to develop and become prosperous. Over time, low-income, less developed countries can move to middle- and high-income economies by achieving self-sustained economic growth. In a sense, poor nations can be seen as being farther back on the timeline.

Question 2

World Systems Theory

Answer 2

The powerful and rich nations have historically exploited the less powerful nations – first, through colonialization and, today, through economic exploitation. How a country is incorporated into the global capitalist economy is the key feature in determining how economic development takes place in that nation.

Question 3

What is the Gini Coefficient used for?

Answer 3

A measure of income inequality which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the income). It tells us how unequally income is distributed within a group. The higher the coefficient, the higher the greater the gap between the rich and the poor.

Question 4

How does the “Culture of Poverty” concept explain poverty?

Answer 4

A set of values that emphasizes living for the moment, rather than thrift, investment in the future or hard work is what keeps the poor from upward social mobility. In other words, the poor themselves are responsible for poverty.

Question 5

How does the Davis and Moore Theory of Social Stratification account for the existence of inequality?

Answer 5

1. All societies have tasks that must be accomplished and positions that must be filled.
2. Some positions are more important for the survival of society than others.
3. The most important positions must be filled by the most qualified people.
4. There is a scarcity of talent available to fill these positions.
5. The positions that are the most important for society and that require scarce talent, extensive training, or both must be the most highly rewarded.

Question 6

What is the difference between a Class System and a Caste System?

Answer 6

Class system - boundaries between hierarchies may be influenced by people’s achieved statuses. Opportunities are open for advancement.

Caste system - boundaries between hierarchies are rigid, people’s positions are set by ascribed status. Advancement is closed and not possible.

Question 7

What is meant by the term “Social Mobility”?

Answer 7

The process of changing one’s social class

Question 8

What is the difference between intergenerational social mobility and intragenerational social mobility?

Answer 8

Intergenerational: Process of changing one’s social class between generations

Intragenerational: Process of changing one’s social class within one’s own life

Question 9

What is the poverty line in the United States (in terms of dollars)?

Answer 9

$26,500 for a family of four

$17,420 for a family of two

$12,880 for one person

Question 10

What is the difference between “absolute” and “relative” poverty?

Answer 10

Absolute poverty - exists when people do not have the means to secure the most basic necessities of life.

Relative poverty - exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living.

Question 11

What is the difference between “income” and “wealth”? Which is more unequally distributed?

Answer 11

Income - wages, salaries, government aid, and property

Wealth - value of economic assets, including income and property (wealth can generate income)