THE ECONMOMY AND WORK1

1. How did the Industrial Revolution has change the economic process? Machines replace
much human labor, as production in factories displaced cottage industry, and agriculture lost
ground to industry. What are some effects of industrialization? Industrializations speeds up
production, shrinking blue collar employment and enlarging white collar work. It further changes
demographic features-changes in the characteristics of a population, human relations, and the
values of societies.
2. What are the two basic types of economic organization? Capitalism and Socialism.
Capitalism is based on private ownership of property and on free competition on the buying and
selling of goods and services. Private ownership is considered important for the health of the
economy because it motivates people to be efficient and productive. Free competition is also
believed beneficial to the economy, because it compels businesses to make the most efficient
use of resources, to produce the best possible goods and services, and to sell them at the
lowest price.
Its driving force is the self interest of individuals. In contrast, socialism
subordinates individual interest to those of society and puts the ownership and control of the
economy in the hands of the state. How do real economies differ from the models offered by
capitalist and socialist theories? No economy is purely capitalist and socialist. All economies
have capitalist and socialist elements. They only differ in degree, ranging on a continuum from
the most capitalist to the most socialist. Generally, capitalist economies are more productive
than socialist ones.
3. What is a big corporation like? The numerous shareholders who own the corporation do not
run it. A small group of directors and managers do. Owners and managers may profit from
corporate assets but may not be held responsible for its liabilities. Corporations tend grow into
giants through mergers and acquisitions. The rise of corporations has both positive and
negative consequences fro the economy and society.
4. What is the governments role in the economy? The government sets the terms that allow
corporations to exist and thrive. It regulates them and other economic factors. It is itself a buyer,
seller and employers. It shapes the whole economic environment as a whole.
5. What are some characteristics of economic corporations? They reap huge profit from abroad,
but they must bottle among themselves for the profit. Because multi nationals are more powerful
than some nations, they can reduce the ability of nations to control their economic fate. To many
developing countries, however, multinationals bring needed jobs, technology, and economic
growth.
6. How does unemployment affect society? The effects are more than economic. With the
increase of unemployment, there is significant rise in numerous problems such as crimes,
alcoholism and suicide.
7. Who are more likely to be satisfied with their work? Older and white collar workers. Given the
same kind of job, women are happier than men. What is the basic cause of job dissatisfaction?
Extreme specialization of work. It leaves little room for responsibility and initiative by the worker.
By tying the worker to an isolated task, to a small part of some large task, specialization can
empty jobs of their meaning. The result can be dehumanizing to some workers.

Summary notes by Thio, Alex. Sociology: An Introduction, 3rd ed. (New York: HarperCollins Publishers Inc., 1992)
465. Revised by Roland L. Aparece, MA Social Science Department, College of Liberal Arts, University of Bohol.

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