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The view that excessive growth of the money supply over long periods leads to inflation

a. is the main contribution of the rational expectations theory.

b. had been absorbed into the mainstream of macroeconomics.

c. is accepted by the monetarists but not by mainstream macroeconomists.

d. is known as the monetary rule.

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Write a summary of of this article below. You should write at least one paragraph.

ABSTRACT
Feminist theories in sociology reflect the rich diversity of general theoretical
orientations in our discipline; there is no one form of feminist theory. The development
of these theories over the last 25 years has only recently begun to
influence the mainstream theory canon, which has much to learn from their insights.
This chapter demonstrates why feminist versions of the following theory
types should be more fully integrated into mainstream sociological theory:
neo-Marxist, macro-structural, exchange, rational choice, network, status expectations,
symbolic interactionist, ethnomethodological, neo-Freudian, and social
role. Feminist standpoint theory, an epistemological critique of mainstream sociology,
is discussed at the beginning, and the chapter concludes with a brief
account of the newly developing effort to theorize the intersection of race, class,
and gender.
INTRODUCTION
The term “feminist theory” is used to refer to a myriad of kinds of works, produced
by movement activists and scholars in a variety of disciplines; these are
not mutually exclusive and include: (a) normative discussions of how societies
and relationships ought to be structured, their current inequities, and strategies to
achieve equity; (b) critiques of androcentric classical theories, concepts, epistemologies,
and assumptions; (c) epistemological discussions of what constitute
appropriate forms, subject matters, and techniques of theorizing from a feminist
perspective; and (d ) explanatory theories of the relationship between gender and

various social, cultural, economic, psychological, and political structures and
processes. Much of this work is explicitly interdisciplinary in inspiration and
intended audience. To complicate matters further, there is no consensus on the
exact meaning of the word “feminist,” which makes it difficult to distinguish
with precision between theoretical material that pertains to gender (e.g. Parsons
1949, 1955, which no one would label feminist) and gender-related theory that
is specifically “feminist.” Finally, there is little consensus among feminist sociologists
about the basic theoretical questions that require an answer, resulting
in the proliferation of theories at a low level of abstraction that explain specific
phenomena (e.g. pay inequity), in addition to more abstract, general works.
To remain within the limits of one chapter, I confine this review in several
ways, beginning by excluding feminist theory that has not been produced or used
extensively by sociologists. While feminist theory is often defined as “womencentered”
(e.g. Lengermann & Niebrugge 1996:436; Smith 1979, 1987; Alway
1995), I use a definition that focuses more broadly on gender, yet maintains the
normative emphasis implied by all definitions of the term feminist, which thus
enables one to distinguish feminist from other gender-relevant theory.

Some feminists focus on those contemporary theories and texts that ignore
the contributions of feminist theories and the topic of gender and conclude that
feminist contributions remain largely ghettoized within our discipline (e.g.Ward
& Grant 1991, Alway 1995). My view is that, while progress has been made
in integrating feminist concerns and insights into the discipline’s theoretical
discourse, much work remains to be done. This chapter demonstrates the
abundance and variety of feminist theoretical insights that can and already have
to some extent contributed to a more robust theoretical understanding of social
life, one which reflects the centrality of gender in virtually all sociocultural
contexts. It also demonstrates that feminist theories emanate from, critique, and
revise the rich array of theoretical traditions that define our discipline. Space
limitations preclude much discussion of precisely how feminist theories can be
better integrated with mainstream ones. Rather, I focus attention primarily on
reviewing the central insights of feminist theories in order to better inform those
sociologists who may be unfamiliar with much of this body of work about the
rich array of theoretical ideas that are at their disposal.

EPISTEMOLOGICAL ISSUES
Much of the literature that is labeled “feminist theory” consists of epistemology
and epistemological critiques of “malestream” sociology. Its foundations reflect
several nonfeminist traditions, especially Marx’s and Mannheim’s discussions
of ideology, Foucault’s work on knowledge and power, and phenomenological
and ethnomethodological approaches, the exact mix of influences varying by
author. While this work makes important contributions to these traditions, for
two reasons I believe that it is a misnomer to call thiswork feminist epistemology
(or theory). First, the issues raised are not in any fundamental way different
from those raised by many scholars who haveworked in these traditions but have
not been interested specifically in women or committed to feminism. Feminists
extend their insights in important ways, but this does not constitute a uniquely feminist approach to sociology. Second, many women in sociology, whose
scholarship they and others consider as well within the feminist tradition, do
not agree with this perspective.
Feminist scholars in a number of disciplines critique what they define as
mainstream, “masculinist,” “objectivist,” and “positivist” social science, and
develop a “feminist” alternative called standpoint theory. In sociology, the
two most widely cited are Dorothy Smith (especially 1987, 1990, also 1979,
1989) and Patricia Hill Collins (especially 1990, also 1986, 1989), whose basic
ideas constitute the focus of this section (see also Harding 1986, 1991). Where
Smith focuses on developing a “woman’s standpoint,” Collins’ work is directed
at an Afrocentric feminist standpoint epistemology. The Issue of Essentialism
Feminist standpoint theory, which is highly attuned to reification committed by
mainstream sociologists, cannot avoid reifying the genders. While Smith and
Collins explicitly recognize considerable variation among women (and presumably
men) in their experiences and consciousness, their own logics, and
many times wording, make it clear that they assume that there are overarching,
gender-specific standpoints; they could not otherwise talk about a “masculine”
form of discourse. In addition, Collins explicitly cites such feminist theorists
as Gilligan (1982) and Chodorow (1978, also 1974), who argue that the
genders are fundamentally different in their moral reasoning and capacities
for/commitments to interpersonal relationships.
Positing dichotomous gender differences that are treated as transcultural and
transhistorical is termed “essentialism,” a view that has substantial currency
among feminists in a variety of disciplines but is hotly contested in our own
(e.g. Lorber et al 1981, Coser 1989, Epstein 1988). The empirical evidence for
it is flawed, often based on small, nonrandom, American samples, and typically
finds only modest differences, along with extensive overlap, between the sexes.
Essentialist thinking converts differences of degree into differences of kind. The
presumed but often unstated origin of essential differences includes psychodynamics
rooted in the parental division of labor (Chodorow 1978) and biological
sex (Rossi 1977, 1984). It has become common for feminist scholars to recognize
within-gender categorical differences (e.g. race, class), but this awareness
of difference has often failed to preclude essentialist thinking about basic personality
and value orientations (e.g. the assumption that, regardless of other
differences, women are nurturant and oriented toward personal relationships,
while men are individuating and oriented toward abstract moral principles).
Given that the evidence suggests modest between-sex and considerable withinsex
differences on virtually all individual-level traits, a dichotomous gender
variable is theoretically useless when speaking of individual-level phenomena.
Explanations that begin by categorically attributing different characteristics
to women and men—cognitive, emotional, relational, and/or behavioral—not
only exaggerate differences in the distribution of such traits by gender, they also
implicitly treat these variables as dichotomous rather than continuous.

10. The monetarist program undertaken during the 1979-1982 period resulted in:

A. a reduction in the inertial rate of inflation.

B. a dramatic rise in unemployment.

C. very high-interest rates.

D. all of the above.

E. none of the above.

 

11. Some economists have suggested replacing the emphasis on controlled money supply as found in monetarism with controlled growth in nominal GDP. Money supply targets, then:

A. would be determined so as to attain the desired nominal GDP level.

B. would be eliminated.

C. could be set arbitrarily.

D. would be settled on following the discovery of an acceptable level of unemployment.

E. all of the above are true.

 

12. Which of the following is NOT a keystone of monetarism?

A, The money supply is the determinant of nominal GDP growth.

B. Fiscal policy can raise interest rates and thereby raise velocity.

C. Prices and wages are relatively stable.

D.The private sector is relatively stable.

E. All of the above are keystones.

 

13. It follows from the assumptions of the rational-expectations macroeconomics that:

A. most unemployment is voluntary.

B. monetary policy can work in the short run but not in the long run.

C. fiscal policy is hamstrung because of delays in the legislative process in Congress.

D. all policy that is predictable will be undone by clever citizens.

E. all are true.

 

14. Which of the following is true according to monetarist theory?

A. The IS curve is quite steep while the LM Curve is relatively flat.

B. Changes in the money supply have their greatest effect on prices.

C. Fiscal policy can do little to improve economic conditions, but much to worsen them.

D. Real GDP stays at or near potential output most of the time.

E. All of the above are true.

Q1. In the short run, an increase in the discount rate usually

a. causes the equilibrium level of real GDP and the price level to fall.

b. leads banks to hold fewer excess reserves.

c. leads to an increase in the price of existing bonds.

d. results in decreases in other interest rates.

Q2. Both Keynesians and monetarists agree that monetary policy works by shifting aggregate supply.

a. true

b. false

Q3. The effect of expansionary monetary policy is to

a. increase real output and decrease the price level.

b. decrease real output and increase the price level.

c. increase real output and increase the price level.

d. decrease real output and decrease the price level.

Q4. The price of bonds and the interest rate are

a. unrelated.

b. inversely related.

c. related, but we are not sure how.

d. positively related.

Q5. If the Fed increases the reserve requirement,

a. banks will issue more loans.

b. consumers will save more.

c. banks will issue fewer loans.

d. consumers will save less.

Q6. A central bank that engages in inflation targeting is following a monetary rule.

a. true

b. false

Q7. The Federal Reserve increased the money supply significantly during the Great Depression, but prices continued to fall anyway.

a. true

b. false

Q8. Keynesian theory argues that

a. decreases in the money supply lead to increases in the interest rate which increases investment which increases the level of real GDP.

b. increases in the money supply lead to decreases in the interest rate which increases investment which increases the level of real GDP.

c. increases in the money supply lead to decreases in the interest rate which decreases investment which decreases the level of real GDP.

d. increases in the money supply cause consumers to spend more which reduces the unemployment rate and therefore increases real GDP.

Q9. The effect of contractionary monetary policy is to

a. decrease real output and increase the price level.

b. increase real output and decrease the price level.

c. increase real output and increase the price level.

d. decrease real output and decrease the price level.

Q10. Keynesian economists believe that monetary policy works through its effect on

a. long-run aggregate supply.

b. the interest rate.

c. consumer confidence.

d. the federal budget deficit.

Q11. An expansionary monetary policy results in lower interest rates, which in turn

a. lead to higher rates of taxation.

b. cause firms to invest more.

c. lead to lower bond prices.

d. cause consumers to save more.

Q12. Contractionary monetary policy is used to combat recessions.

a. true

b. false

Q13. Economic growth can also be defined as the cumulative contribution of the rate of growth of capital, the rate of growth of labor, and the rates of growth of capital and labor productivity.

a. true

b. false

Q14. Small differences in the annual growth rate of a country add up to large differences over time because of compounding.

a. true

b. false

Q15. Economic growth occurs when

a. there is an increase in the inflation rate.

b. there is an increase in the amount of capital.

c. there is an increase in the unemployment rate.

d. the production possibilities curve becomes flatter.

Q16. Which one of the following is TRUE?

a. Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country.

b. For every country that experiences an increase in its growth rate, there must be another experiencing a decline.

c. A well-defined system of property rights benefits only the wealthy, and consequently it produces income inequality that will stifle economic growth.

d. Restricting imports will enhance a country's economic growth.

Q17. Economic growth is reflected in

a.

growth in total output.

b. an increase in tax revenue.

c. increases in the level of employment.

d. increase in per capita real GDP.

Q18. Economic growth is reflected in the production possibilities curve becoming flatter.

a. true

b. false

Q19. Research has shown that the growth of developing countries is most strongly enhanced by

a. providing a good secondary education.

b. increasing the money supply.

c. providing incentives to have large families.

d. providing colleges and universities.

Q20. Which of the following is the most important factor affecting economic growth?

a. the rate of interest

b. the exchange rate

c. the price level

d. the rate of saving

Q21. Secondary schooling makes measurable contributions to economic growth in developing countries.

a. true

b. false

Q22. Poorly defined property rights inhibit economic growth.

a. true

b. false

Q23. Which one of the following helps preserve incentives to develop new technologies?

a. tariffs

b. income taxes

c. patents

d. quantity restrictions on imports

Q24. Studies indicate that

a. there is no relationship between economic growth and saving.

b. there is a negative relationship between economic growth and saving.

c. there is a positive relationship between economic growth and saving.

d. saving does not contribute to capital formation.

Q25. The European Union is

a. an organization established to resolve trade disputes among member nations.

b. a group of countries that impose tariffs on one another's agricultural goods.

c. a restricted trade zone.

d. a common market.

Q26. Which one of the following is FALSE?

a. Trade of goods facilitates the exchange of intellectual property as well.

b. The end result of trade is that richer countries take advantage of poorer ones.

c. A country enjoys an absolute advantage if it can produce a good with fewer resources than any other country can.

d. Countries that engage in trade will end up specializing according to their own comparative advantage.

Q27. If there are two goods and two countries, then one country can have

a. an absolute advantage in both goods but a comparative advantage in only one good.

b. an absolute advantage in both goods and a comparative advantage in both goods.

c. an absolute advantage in neither good and a comparative advantage in both goods.

d. an absolute advantage in one good, an absolute disadvantage in the other good, and a comparative advantage in neither.

Q28. An infant industry is one in which

a. the firms are too new and too small to compete internationally.

b. no country has a comparative advantage.

c. no country has an absolute advantage.

d. the products are only consumed domestically.

Q29. The European Union is an example of a common market.

a. true

b. false

Q30. An import quota will make the supply curve for the imported good

a. unitary elastic.

b. negatively sloped.

c. perfectly elastic.

d. perfectly inelastic.

Q31. If the infant-industry argument is used to protect an industry that has already matured then

a. consumers lose because they pay a price for a product which is below the world price.

b. consumers lose because they pay a price for a product which is above the world price.

c. no one loses.

d. stockholders lose because the firm cannot compete with other firms.

Q32. Protection should be withdrawn from an infant-industry when the companies in the industry

a. reach a sufficient size to compete with foreign firms.

b. become profitable.

c. are listed on the domestic stock exchange.

d. double their sales revenues.

Q33. Which of the following is a true statement?

a. Exporters benefit from trade and importers do not.

b. Free trade harms domestic producers of goods that face import competition.

c. Consumers benefit from trade and producers do not.

d. Everyone benefits from free trade in the short run.

Q34. In the United States today, imports are over

a. 22 percent of GDP.

b. 26 percent of GDP.

c. 14 percent of GDP.

d. 18 percent of GDP.

Q35. Table 16.6

Product Country X Country Y

Gallons of Ice Cream 2,000 1,000

Yards of Textiles 6,000 2,000

Table 16.6 shows the combinations of quantities of two goods, gallons of ice cream and yards of textiles, that can be produced with all of the resources available in two countries, X and Y.

Refer to Table 16.6. Which of the following statements is TRUE?

a. Country X has a lower opportunity cost of producing ice cream than does Country Y.

b. Country Y has a comparative advantage in producing textiles.

c. Country X has a comparative advantage in producing ice cream.

d. In Country X, the opportunity cost of producing a gallon of ice cream is three yards of textiles.

Q36. Table 16.1

Alpha's Production Possibilities

A B C D E

Cookies 4 3 2 1 0

Coffee 0 5 10 15 20

Beta's Production Possibilities

A B C D E

Cookies 8 6 4 2 0

Coffee 0 6 12 18 24

Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.

Refer to Table 16.1. The table shows the production possibilities of cookies and coffee in Alpha and Beta measured in tons. In Alpha the domestic cost of 1 ton of cookies

a. is 5 tons of coffee.

b. changes with the level of coffee production.

c. changes with the level of cookie production.

d. averages 4 tons of coffee.

Q37. Table 16.1

Alpha's Production Possibilities

A B C D E

Cookies 4 3 2 1 0

Coffee 0 5 10 15 20

Beta's Production Possibilities

A B C D E

Cookies 8 6 4 2 0

Coffee 0 6 12 18 24

Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.

Refer to Table 16.1. If these two countries, Alpha and Beta, specialize based on comparative advantage

a. Beta will specialize in producing both items.

b. Alpha will specialize in cookies, and Beta will specialize in coffee production.

c. Alpha will specialize in coffee, and Beta will specialize in cookies.

d. Alpha will specialize in producing both items.

Q38. A country is made richer by its exports and poorer by its imports.

a. true

b. false

Q39. The demand for Japanese yen will increase when

a. Japan becomes more productive relative to the United States.

b. Americans change preferences in favor of domestically produced goods.

c. America is perceived as more stable politically and economically than Japan.

d. real interest rates in Japan fall.

Q40. If labor productivity improves in India relative to other countries,

a. the demand for the Indian rupee will decrease, leading to its appreciation.

b. the demand for the Indian rupee will decrease, leading to its depreciation.

c. the demand for the Indian rupee will increase, leading to its depreciation.

d. the demand for the Indian rupee will increase, leading to its appreciation.

Q41. Assume that there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in

a. an appreciation of the Australian dollar.

b. a movement along the demand curve for Australian wine.

c. a decrease in the supply of U.S. dollars in the foreign exchange market.

d. an appreciation of the U.S. dollar.

Q42. Capital account transactions occur

a. when a U.S. citizen purchases stock in a U.S. corporation.

b. because of foreign investments.

c. when you move money from one U.S. bank to another U.S. bank.

d. when a U.S. company purchases goods from a foreign company.

Q43. When a country intervenes in foreign currency markets to maintain a fixed exchange rate

a. it is engaged in hedging.

b. it increases the foreign exchange risk faced by its citizens.

c. it does so by using its foreign exchange reserves.

d. it smoothes out fluctuations in the level of business activity.

Q44. An increase in the U.S. demand for Japanese yen causes

a. an increase in the dollar-price of yen.

b. an increase in the demand for U.S. goods.

c. an increase in the yen-price of dollars.

d. a decrease in the supply of yen.

Q45. Other factors held constant, a rise in the price level in Japan that exceeds the rise in the price level in other countries will most likely result in

a. a decrease in the supply of the Japanese yen.

b. an increase in the supply of Japanese goods.

c. a depreciation of the dollar.

d. a decline in the level of Japanese exports.

Q46. The fact that the United States has a trade deficit means that

a. U.S. workers cannot compete with workers overseas.

b. the United States has a surplus in its capital account.

c. interest rates in the United States are low compared to the world average.

d. the United States has a deficit in its capital account.

Q47. Which of the following statements is true about the role of gifts given to U.S. citizens from foreigners?

a. Gifts are only included in the balance of payments if the gift is over $1,000,000.

b. Gifts given to U.S. citizens are not included in the balance of payments, but gifts given to foreigners are included as deficit items.

c. Gifts are included in the balance of payments.

d. Gifts are not included in the balance of payments.

Q48. Every transaction concerning the exportation of American goods constitutes a

a. demand for foreign currency and a supply of dollars.

b. demand for dollars, with no effect on markets for foreign currencies.

c. supply of foreign currency, with no effect on the market for dollars.

d. supply of foreign currency and demand for dollars.

Q49. If the capital account is in surplus, the current account will be in deficit.

a. true

b. false

Q50. The balance of payments consists of the

a. capital account, official reserve transactions account, and recent account.

b. current account, official reserve transactions account, and monetary account.

c. current account, capital account, and official reserve transactions account.

d. current account, capital account, and gold flows.

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