Labor, Money, Banking and Finance Flashcards
Screening Effect
completion of college shows employes that applicant is intelligent and hardworking
Learning Effect
Education increases productivity and results in higher wages
Contingent Employment
temporary or part-time job
productivity
value of output
labor union
organization for workers that tries to improve working conditions, wages and benefits
strike
organized work stoppage to make employer address union demands
blue-collar worker
works in an industrial job and receives wages
white-collar worker
in a professional job or clerical job usually earns a salary
mediation
neutral person meets with each side to try to find a solution that both sides will accept
arbitration
third party reviews that case and imposes a decision that is legally blinding
barter
exchange of one set of goods or services for another
money
anything that serves as a medium of exchange
medium of exchange
determines value during the exchange of goods and services
store of value
keep its value if stored rather than used
currency
coins and paper bills used as money
commodity money
objects that have value in themselves and are also used as money ex) salt
representative money
objects that have value because the holder can exchange them for something else of value ex) money
fiat money
government makes it “legal tender” to pay debt
bank
institution for receiving, keeping, and lending money
gold standard
system in which paper money and coins are equal to a certain amount of gold
money supply
all money available in the u.s. economy
mutual fund
pools money to purchase short-term “low-risk” investments
default
failure to pay back a loan
mortgage
type of loan that is used to buy real estate
credit card
entitles holder to buy good and services based on promise to pay
interest
price paid for use of borrowed money
principal
amount of money borrowed
debit card
check card withdraws money from checking accounts
investment
the use of assets to an income or profit
diversification
spreading out investments to reduce
portfolio
a collection of financial assets
prospectus
an investment report to potential investor
return
money investor receives above the amount initially invested
bond
receive interest for loaning money to a business or the government
maturity
when payment to a bond holder is due
yield
yearly rate of interest on a bond
savings bond
low-denomination bond issued by us govt
securities and exchange commission (SEC)
agency of government that regulates financial markets
junk bond
lower-rated, potentially higher paying bond
capital market
market where money is lent for LONGER than a year
money market
marker where money is lent for LESS than a year
share
portion of a stock
dividends
profits paid to stockholders,usually every quarter
capital gain
difference between HIGHER selling price and LOWER purchase price
capital loss
difference between LOWER selling price and HIGHER purchase price
stockbroker
person who links buyers and sellers of stock
brokerage firm
business that specializes in trading stocks
stock exchange
market for buying and selling stock
frictional unemployment
whole trying to find a job
seasonal unemployment
evaluate of harvest schedules or industries that shut down for the season
structural unemployment
workers skills don’t made the jobs that are available
cyclical unemployment
during economic downturns
underemployed
being overqualified or working part time when you want to work full time
inflation
general increases in prices
inflation rate
percentage rate of change in price level over time
wage-price spiral
rising wages cause higher and higher prices cause higher wage
poverty threshold
income is insufficient to support a family or household
food stamps
government issued coupons that recipients exchange for food
enterprise zone
where companies can locate free of certain locally state and federal taxes
