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Section 1: Power and Authority
Chapter Preview Section 1: Power and Authority Section 2: Political Power in American Society Section 3: Economic Systems Section 4: The Modern Corporation Section 5: Work in the Modern Economy Chapter Menu

Chapter Preview · Section 1
Power and Authority (pages 424–432) Political systems can be based on three types of authority: charismatic, traditional, and rational-legal. Democratic, totalitarian, and authoritarian are types of political systems. In democracies, power lies with elected officials. Totalitarian systems have absolute rulers who control all aspects of political and social life. Authoritarian rules possess absolute control but often permit some personal freedoms. Chapter Preview 1

Political Power in American Society (pages 433–439) The two major models of political power are elitism and pluralism. Advocates of the conflict perspective believe American society is controlled by elites. Pluralists, whose view is associated with functionalism, depict power as widely distributed among interest groups. Voting does not seem to be an effective means for nonelites to influence political decisions in the U.S. Chapter Preview 2

Economic Systems (pages 440–445) Capitalist economics are based on private property and the pursuit of profit. In socialist economies, the means of production are owned collectively. Government has an active role in planning and controlling the economy. Chapter Preview 3

The Modern Corporation (pages 446–449) Corporations affect domestic political decision making and influence the political and economic institutions of the countries around the world. Chapter Preview 4

Work in the Modern Economy (pages 450–456) Workers today face a changing job structure. More corporations are downsizing and replacing full-time employees with consultants or temporary workers. Chapter Preview 5

Chapter Preview-End

Authority is the sanctioned use of power
Authority is the sanctioned use of power. Political systems can be based on three types of authority: charismatic, traditional, and rational-legal. Democratic, totalitarian, and authoritarian are types of political systems. In democracies, power lies with elected officials. Totalitarian political systems have absolute rulers who control all aspects of political and social life. Authoritarian rulers possess absolute control but often permit some personal freedoms. Section 1-Preview

political institution power coercion authority charismatic authority
economic institution political institution power coercion authority charismatic authority traditional authority rational-legal authority representative democracy totalitarianism authoritarianism Section 1-Key Terms

Section 1-Polling Question
Which of the following are political systems? A. Democratic B. Totalitarian C. Authoritarian D. All of the above A B C D Section 1-Polling Question

Definitions of Power and Authority
The set of functions that concern the production and distribution of goods and services for a society is called the economic institution. The responsibility for handling conflicts lies with the institution through which power is obtained and exercised—the political institution. Section 1

Definitions of Power and Authority (cont.)
Politics and the economy are closely linked. Power is the ability to control the behavior of others, even against their will. Coercion is the use of physical force or threats to exert control. Authority is power accepted as legitimate by those subject to it. Section 1

What is power and authority?
A. The ability to control the behavior of others B. Control through force C. Power accepted as legitimate by those subject to it D. All of the above A B C D Section 1

Forms of Authority Three types of leaders:
Charismatic authority—these leaders lead through the power or strength of their personalities or the feelings of trust they inspire in large numbers of people. Traditional authority—the legitimacy of this leader is rooted in custom. Rational-legal authority—power resides in the offices rather than in the officials. Section 1

What are three forms of authority? A. Charismatic B. Traditional
C. Rational-legal D. All of the above A B C D Section 1

Types of Political Systems
Political systems have evolved over time, finally boiling down into democratic, totalitarian, and authoritarian forms. Section 1

B. Exceptional physical prowess C. Personal charisma
In hunting and gathering societies, political leaders were chosen on the basis of which of the following? A. Their family line B. Exceptional physical prowess C. Personal charisma D. None of the above A B C D Section 1

Democracy In a representative democracy, elected officials are responsible for fulfilling the wishes of the majority of the citizens. Two-party versus three-party system Section 1

Democracy (cont.) Two assumptions:
Not everyone in modern society can be actively involved in all political decision making. Political candidates who fail to satisfy the wishes of the majority are not expected to win reelections. Political Freedom Section 1

Which party system do you favor? A. Two-party B. Three-party
C. Winner take all D. All of the above A B C D Section 1

Totalitarianism Totalitarianism—a ruler with absolute power attempts to control all aspects of a society. Characteristics: A single political party, typically controlled by one person A well-coordinated campaign of terror Section 1

Totalitarianism (cont.)
Total control of all means of communication A monopoly over military resources A planned economy directed by a state bureaucracy The Political Continuum Section 1

Characteristics of totalitarian states include which of the following:
A. A single political party typically controlled by one person B. A well-coordinated campaign of terror C. A monopoly over military resources D. Total control of all means of communication A B C D Section 1

Authoritarianism Authoritarianism refers to a political system controlled by elected or nonelected rulers who usually permit some degree of individual freedom but do not allow popular participation in government. Section 1

How does authoritarianism differ from totalitarianism?
A. Citizens can participate in government. B. There is some degree of individual freedom. C. It utilizes a campaign of terror. D. None of the above A B C D Section 1

Section 1-End

The two major models of political power are elitism and pluralism
The two major models of political power are elitism and pluralism. Advocates of the conflict perspective believe American society is controlled by elites. Pluralists, whose view is associated with functionalism, depict power as widely distributed among interest groups. Voting does not seem to be an effective means for nonelites to influence political decisions in the U.S. Section 2-Preview

political socialization pluralism elitism interest group power elite
Section 2-Key Terms

Section-Polling Question
How much influence do you think the political power has in the hands of the elite or distributed among different groups? A. Much influence B. Some influence C. Little influence D. No influence A B C D Section-Polling Question

Influence of the Vote In practice, the amount of real choice exercised through voting is limited due to restricted candidate choices. Political socialization involves the informal and formal processes by which a person develops political opinions. Section 2

Influence of the Vote (cont.)
Informal agents of socialization: The family Education Mass media Economic status and occupation Age and gender Section 2

The U.S. has one of the lowest voter turnout rates in the industrialized world (58% in 2004). Voter Participation in Presidential Elections: 1932–2004 Section 2

Reasons: Low level of confidence in political leaders. Political parties are no longer instrumental in getting voters to the polls. Voter Turnout Section 2

A B C D What are some of the reasons voter turnout is so low?
A. Relatively low level of confidence in political leaders B. Political parties are no longer as instrumental in getting voters to the polls C. People with little education D. People with smaller incomes A B C D Section 2

Two Models of Political Power
Two major models of political power: Pluralism—political decisions are the result of bargaining and compromise among special interest groups. Elitism—a community or society is controlled from the top by a few individuals or organizations. Characteristics of Two Models of Political Power Section 2

Which of the following are Pluralist and Power Elite perspectives?
A. Resources of interest groups B. Concentrated in hands of elites C. Spread widely among interest groups D. Preferences of the elites A B C D Section 2

Functionalist Perspective: Pluralism
According to pluralists, major political decisions are not made by an elite few. An interest group is a group organized to influence political decision making. Pluralists believe that decisions are made as a result of competition among special interest groups, each of which has its own stake in the issues. Types of Interest Groups Section 2

Would you consider interest groups to be a positive or negative aspect of politics?
B. Negative A B Section 2

Conflict Perspective: The Power Elite
The power elite consist of key people in each area (economic, political, and military) who overlap to form a unified group in order to gain what they want politically. Section 2

What common interests do members of the power elite share?
A. Similar social backgrounds B. Economic backgrounds C. Upper-class families D. Belong to Episcopalian and Presbyterian churches A B C D Section 2

Section 2-End

Capitalist economies are based on private property and the pursuit of profit, and government, in theory, plays a minor role in regulating industry. In socialist economies, the means of production are owned collectively, and government has an active role in planning and controlling the economy. Section 3-Preview

capitalism monopolies oligopolies socialism Section 3-Key Terms

What are the basic premises of capitalism? A. The sanctity of private property B. The right of individuals to profit from their labors C. The pursuit of profit D. All of the above A B C D Section 3-Polling Question

Capitalism Capitalism is an economic system founded on two basic premises: the sanctity of private property the rights of individuals to profit from their labors Section 3

Capitalism (cont.) No pure capitalist society exists.
Deviations include: Monopolies—companies that control a particular market. Oligopolies—combinations of companies working together to control a market. Examples of Government Economic and Regulatory Assistance Section 3

Despite its shortcomings, do you feel that capitalism is a good economic system?
A. Very much so B. Somewhat C. Not at all A B C Section 3

The Role of Government in Capitalism
The Constitution provides a role for the government in the promotion of a sound economy. The government is responsible for the: regulation of commerce development of a strong currency creation of uniform standards for commerce provision of a stable system of credit Section 3

How strongly do you feel the government does a good job promoting a sound economy?
A. Very strongly B. Somewhat strongly C. Not very strongly D. Not strongly at all A B C D Section 3

Socialism Socialism is an economic system founded on the belief that the means of production should be controlled by the people as a whole. The state should own and control property. Section 3

Socialism (cont.) Workers should be able to exert significant control over both their work organizations and the policy directions of the society as a whole. Pure socialism does not exist. Section 3

Which is the best reason why a purely socialist economy does not exist?
A. Workers receive wages below the value their labor produces. B. Workers have little control over their work. C. Both the state and workplace exist for the worker’s benefit D. The workers exert significant control. A B C D Section 3

Mixed Economic Systems
Most nations fall between the extremes of capitalism and socialism and include elements of both economic systems. Section 3

Do you feel that mixing both systems is beneficial? A. Very much so
B. Somewhat C. Not very much D. Not at all A B C D Section 3

Section 3-End

Corporations, especially those with multinational connections, have grown very powerful. Corporate mangers affect domestic political decision making and influence the political and economic institutions of countries around the world. Section 4-Preview

interlocking directorates conglomerates multinationals
corporation interlocking directorates conglomerates multinationals Section 4-Key Terms

Does the following come to mind when you think of a corporation? A. An organization owned by shareholders B. Have limited liability and limited control C. Cannot be held financially responsible for actions A B C Section 4-Polling Question

The Nature of Corporations
A corporation is an organization owned by shareholders who have limited liability and limited control. The real control rests with the board of directors and management. Section 4

Do you agree with the following statement: “U. S
Do you agree with the following statement: “U.S. corporations influence the economies of nations around the world?” A. Very much B. Somewhat C. Not very much D. Not at all A B C D Section 4

Corporate Influence Top corporate officials have tremendous influence on government decisions. Reasons: They can reward or punish elected government officials through investment decisions. Section 4

Corporate Influence (cont.)
Interlocking directorates—directorates that result when heads of corporations sit on one another’s boards. Conglomerates—networks of unrelated businesses operating under a single corporate umbrella. Section 4

Do you feel that it is positive or negative that businesses have so much influence on government decisions? A. Positive B. Negative A B Section 4

Multinational Corporations
Multinationals are firms based in highly industrialized societies with operating facilities throughout the world. Corporations provide developing countries with: technology capital foreign markets products Total Revenue of Multinational Corporations versus National Gross Domestic Products Section 4

Multinational Corporations (cont.)
Multinationals harm the economies of foreign countries by: exploiting natural resources disrupting local economies introducing inappropriate technologies and products increasing the amount of income inequality Section 4

A B Do you feel that multinationals are beneficial or harmful?
A. Beneficial B. Harmful A B Section 4

Section 4-End

Workers today face a changing job structure
Workers today face a changing job structure. More corporations are downsizing and replacing full-time employees with consultants or temporary workers. Evidence indicates that this trend is having some negative consequences. Section 5-Preview

contingent employment
primary sector secondary sector tertiary sector occupations core tier peripheral tier downsizing contingent employment Section 5-Key Terms

What are some reasons companies are downsizing? A. Contingent employment B. Work can be done by fewer employees C. Lower profits caused by increasing foreign competition A B C Section 5-Polling Question

The Changing Nature of Work
Primary sector—this sector depends on the natural environment to produce economic goods. Secondary sector—this sector includes factory workers of all types (blue collar workers). Tertiary sector—these employees provide services (white collar workers). Distribution of Workers by Occupational Category Section 5

Do you feel that the economy will continue to demand tertiary workers?
A. Very much so B. Somewhat C. Not very much D. Not at all A B C D Section 5

Occupational Structure
Occupations are categories of jobs that involve similar activities at different work locations. Section 5

Occupational Structure (cont.)
A two-tier occupational structure has developed in the U.S.: Core tier—jobs with large firms who pay more, offer better benefits and provide longer-term employment. Peripheral tier—jobs in smaller firms that have low pay, little or no benefits, and short-term employment. Section 5

Good news: The U.S. economy continues its healthy growth and unemployment remains low. Bad news: The new jobs are not as good, or do not require the same skill-set, as the manufacturing jobs they are replacing. Section 5

Reemployment of laid-off workers is a problem. The U.S. economy has been losing higher-paying jobs and gaining lower-paying jobs, also known as downwaging. Section 5

What reasons do you feel the American dream is being threatened?
A. Job loss B. Downwaging trends C. Downsizing D. Contingent employment A B C D Section 5

Downsizing and Contingent Employment
These two strategies reduce employment in core industries: Downsizing—the process by which companies reduce the size of their full-time workforce. Contingent employment involves hiring people on a part-time or short-term basis. Evidence of Declining Trust in Management Section 5

How strongly do you feel about the following statement: “Technology should replace people?”
A. Very strongly B. Somewhat strongly C. Not very strongly D. Not strongly at all A B C D Section 5

Section 5-End

The Political Continuum
Figure 13.1

Voter Participation in Presidential Elections: 1932–2004
Source: U.S. Bureau of the Census, Statistical Abstract of the United States, 2004–2005 and Current Population Survey (November 2004). Figure 13.2

Figure 13.3

Figure 13.4A

Figure 13.4B

Figure 13.5

Total Revenue of Multinational Corporations versus National Gross Domestic Products
Source: The World Almanac Book of Facts, 2005. Figure 13.6

Distribution of Workers by Occupational Category
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2004. Figure 13.7

Evidence of Declining Trust in Management
Source: The 2003 Towers Perrin Talent Report( Boston, MA), 2003. Figure 13.8

Voter Turnout Snapshot
Source: U.S. Bureau of the Census, Current Population Survey (November 2004). Snapshot

Political Freedom World View
Source: Freedom House, Washington, D.C., 2005. World View

Sociology Chapter Transparencies
Heights of American Presidents American Presidents Who Have Served in War Religious Preferences of Presidents Profile of the American Voter How Much Responsibility Should the Government Take for… Occupation by Race and Ethnicity (African American and Latino) Occupations with the Largest Expected Growth Transparency Menu

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economic institution institution that determines how goods and services are produced and distributed Vocab1

political institution
institution that determines how power is obtained and exercised Vocab2

power the ability to control the behavior of others Vocab3

coercion control through force Vocab4

authority power accepted as legitimate by those subject to it Vocab5

charismatic authority
authority that arises from the personality of an individual Vocab6

traditional authority
form of authority in which the legitimacy of a leader is rooted in custom Vocab7

rational-legal authority
form of authority in which the power of government officials is based on the offices they hold Vocab8

representative democracy
a system of government that uses elected officials to fulfill majority wishes Vocab9

totalitarianism a political system in which a ruler with absolute power attempts to control all aspects of a society Vocab10

authoritarianism a political system controlled by elected or nonelected rulers who usually permit some degree of individual freedom Vocab11

political socialization
informal and formal processes by which a person develops political opinions Vocab12

pluralism system in which political decisions are made as a result of bargaining and compromise among special interest groups Vocab13

elitism system in which a community or society is controlled from the top by a few individuals or organizations Vocab14

interest group a group organized to influence political decision making Vocab15

power elite a unified group of military, corporate, and government leaders Vocab16

capitalism an economic system based on private ownership of property and the pursuit of profit Vocab17

monopolies companies that have control over the production or distribution of a product or service Vocab18

oligopolies combinations of companies that control the production or distribution of a product or service Vocab19

socialism an economic system founded on the belief that the means of production should be controlled by the people as a whole Vocab20

corporation an organization owned by shareholders, who have limited liability and limited control Vocab21

interlocking directorate
directorates that result when heads of corporations sit on one another’s boards Vocab22

conglomerates networks of unrelated businesses operating under one corporate umbrella Vocab23

multinationals firms based in highly industrialized societies with operating facilities throughout the world Vocab24

primary sector that part of the economy producing goods from the natural environment Vocab25

secondary sector that part of the economy engaged in manufacturing goods Vocab26

tertiary sector that part of the economy providing services Vocab27

occupations categories of jobs that involve similar activities at different work locations Vocab28

core tier an occupational structure composed of large firms dominating their industries Vocab29

peripheral tier an occupational structure composed of smaller, less profitable firms Vocab30

downsizing the process by which companies reduce their workforces
Vocab31

contingent employment
the hiring of part-time, short-term workers Vocab32

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