Exam 4 Flashcards
Labor union whose members perform the
same kind of work; same as trade union.
Craft Union
Labor union whose members perform
different kinds of work in the same
industry.
Industrial Unions
Union-organized work stoppage designed to gain concessions from an employer
Strike
Demonstrate or march before a place of business to protest a company’s actions or policies
Picket
Protest in the form of refusal to buy, including attempts to convince others to take their business elsewhere
Boycott
Antiunion Backlash Right to work laws
State law making it illegal to require a
worker to join a union.
Established by the Labor-
Management Relations Act, or
Taft-Hartley Act, of 1947.
explanation stating that the supply and demand
for a workers skills and services
determine the wage or salary.
Market Theory of Wage
Determination
Explanation of wage rates based on the
bargaining strength of organized labor.
THEORY OF NEGOTIATED WAGES
Theory that employers are willing to pay more for people with certificates, diplomas, degrees, and other indicators of superior ability
Signaling theory
Process of negotiating between union
and management representatives over
pay, benefits, and job-related matters.
COLLECTIVE BARGAINING
Process of resolving a dispute by bringing
in a neutral third party to help both sides
reach a compromise.
Mediation
Agreement by two parties to place a
dispute before a third party for a binding
settlement; also called binding
arbitration.
Arbitration
Agreement between union and
management to have a neutral third
party collect facts about a dispute and
represent nonbinding recommendations.
Fact-finding
Court order issued to prevent a company
or union from taking or not taking action
during a labor dispute.
Injunction
Temporary government takeover of a
company to keep it running during a
labor management dispute.
Seizure
Seemingly invisible barrier hindering the advancement of women and minorities in a white male-dominated organization
Glass Ceiling
Wage scale paying newer workers a
lower wage than others already on the
job.
Two-Tier wage system
Wage, fringe benefit, or work rule given
up when renegotiating a contract.
Giveback
Systematic changes in real GDP marked by alternating periods of expansion and contraction
Business Cycles
Changes in the real GDP marked by alternating periods of expansion and contraction that occur on an irregular basis
Business Fluctuations
Decline in real GDP lasting at least two
quarters or more.
Recession
Point in time when real GDP stops expanding
and begins to decline.
Peak
Point in time when real GDP stops declining
and begins to expand.
Trough
Period of uninterrupted growth of real GDP,
industrial production, real income, and
employment lasting for several years or more;
recovery from recession.
Expansion
Index used to measure price changes for a
market basket of frequently used consumer
items.
Consumer Price Index (CPI)
State of the economy with large numbers of
unemployed, declining real incomes,
overcapacity in manufacturing plants, and
general economic hardship.
Depression
Explanation that prices rise because all sectors of the economy try to buy more goods and services than the economy can produce
Demand-pull inflation
noninstitutionalized part of the
population, aged 16 and over,
either working or looking for a job.
Civilian Labor force
State of working for less than one hour per week for pay or profit in a non-family-owned business, while being available and having made an effort to find a job during the past month
Unemployed
Ratio of unemployed individuals divided by total number of persons in the civilian labor force, expressed as a percentage
Unemployment rate
Frictional unemployment
unemployment caused by workers changing
jobs or waiting to go to new ones.
Structural unemployment
unemployment caused by a fundamental
change in the economy that reduces the demand for some workers.
Technological unemployment
unemployment caused by technological
developments or automation that make some workers skills obsolete.
Cyclical unemployment
unemployment directly related to swings in
the business cycle.
Seasonal unemployment
unemployment caused by annual changes in
the weather or other conditions that prevail at certain times of the year.
The first attempt to organize labor in
America was in
1778
In 1778 who joined together where for what?
printers joined
together in New York City to demand
higher pay.
Until about 1820…
most of Americas workforce was made up of farmers, small business owners, and the self-employed.
Labor union whose members perform the
same kind of work; same as trade union.
Craft union
Labor union whose members perform
different kinds of work in the same
industry.
Industrial Unions
During the Great Depression how many people were without jobs?
1 in 4 workers
Wage Determination
1.Noncompeting Categories of Labor
2.Market Theory of Wage Determination
3.Theory of Negotiated Wages
4.Signaling Theory
explanation stating that the supply and
demand for a workers skills and services determine the wage or salary.
Market Theory of Wage Determination
Why would an athlete have a higher wage?
High demand and low supply result in high annual wages.
Resolving Labor Disputes
Collective Bargaining
Mediation
Arbitration
Fact Finding
Injunction
Seizure
Presidential Intervention
What are the reasons that women get paid less then men?
Human capital differences
Gender and occupation
Discrimination
Causes of Business Cycles
External shocks
Changes in investment spending
Changes in monetary policy
Fiscal-policy shocks
Speculation and “bubbles”
External shocks
an increase in oil prices, wars,
or international conflicts.
Changes in Investment Spending
changes in
capital expenditures.
Changes in Monetary Policy
point to the
Federal Reserve Systems policies on interest
rates.
Fiscal-Policy Shocks
fiscal policy, the use of federal government spending and revenue-collection measures, have also been blamed.
Speculation and “Bubbles”
expectations
about the future.
Advantages and disadvantages to a 30 year loan
lower payments each month
greater financing overall
advantages and disadvantages to a 15 year loan
greater payments each month
lower financing overall
Why do creditors prefer creeping inflation rather than hyperinflation
because the money they loan will not
decline in value as much by the time
the loan is repayed.
ratio of unemployed individuals divided by total number of persons in the civilian labor force, expressed as a percentage.
Unemployment rate
Example of Cyclical Unemployment
An autoworker is laid of during a recession.
Example of Frictional Unemployment
A college graduate is
looking for her first job.
example of Structural Unemployment
A steelworker loses her job
when her company moves to Mexico.
example of Seasonal Unemployment
A snowplow operator is laid
off after winter.
example of unemployed
A new father quits his job to
become a stay-at-home dad.
example of Technological Unemployment
A photographer loses his job
because his skill as a slide
developer becomes obsolete.
Signaling theory
Is the theory that employers are willing to pay more for people with certificates, diplomas, degrees, and other indicators of superior ability
Theory of negotiated wages
is the explanation of wage rates based on the bargaining strength of organized labor
Market theory of wage determination
is the explanation stating that the supply and demand for a workers skills and services determine the wage or salary
Noncompeting Categories of Labor
unskilled
semi skilled
skilled
professional
