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POLS: Political Economics 3.

1 Quiz
1. The fact that corporate profits, after paying taxes, as a percentage of the gross
domestic product (GDP) have been increasing while wages as a percentage of GDP
have been decreasing is evidence that: a) and b) above.
2. If you are unhappy with the tremendous political power exerted by big banks (like
Wells Fargo or Citibank), what can you do? Move your money and financial services
business into a member-owned credit union or a local community bank.
3. How does the level of poverty in the U.S. compare to that of other advanced
countries? It is significantly higher.
4. America is #1!! Which of the following is true: The US has the highest rates of
poverty, and the highest rates of children in poverty, of all economically advanced
5. Which of the following statements is true: The economic system affects the political
system in important ways.
6. Which of the following is an element of the political power of corporations:
Companies can use the argument that they might have to lay off workers to fight
against environmental and other types of regulation.
7. From 1980 to 2006, the ratio between the average annual income of the top 0.01%
and of the bottom 90% increased from 180:1 to 976:1. What helps to explain this
increase? The difference between CEO pay and the average employee's salary in large
companies increased substantially.
8. In comparison to other economically advanced countries, the distribution of wealth
and income in the U.S. is: more unequal.
9. Which of the following is a way that wealthy individuals have an advantage when it
comes to participating in politics: All of the above.
10. The level of poverty now compared to what it was in 2000 is: Higher.
11. Which of the following is a way that corporations can have an effect on politics: they
can create advertising campaigns to influence the public on issues they care about (for
example, oil and gas exploration), and donate money to support candidates for office.
12. The six children of Sam Walton, the founder of Walmart, have more wealth between
them than the total wealth held by 50 million of their fellow Americans. They became
wealthy by: Inheriting ownership stakes in Walmart after their father passed away.
13. Which of the following statements is true: When Walmart comes into a community,
average wages and the overall standard of living go down.
14. True or false: Issues of inequality have to do not with the size of the pie (how big it is
altogether), but the way it gets divided (the relative sizes of the pieces): True.