Test 3 Flashcards
screening effect
competition of college shows employers the applicant is intelligent and hard-working
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 try to improve working conditions, wages, and benefits
blue-collar worker
works in an industrial job and receives wages
white-collar worker
in a professional or clerical job, usually earning a salary
mediation
neutral person meets with each side to try to find a solution that both sides will accept
Arbitration
a third-party reviews the case and imposes a decision that is legally binding
barter
Exchange of one set of goods or services for another
money
anything that serves as a medium of exchange
store of value
keeps its value if stored rather than use
currency
coins and paper bills used as money
commodity
objects that have value in themselves and are also used as money
representative money
objects that have value because the holder can exchange them for something else of value
Fiat money
Government makes it legal tender to pay debts
Bank
An 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 United States 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 goods 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 account
investment
The use of assets to earn income or profit
diversification
spreading out investments to reduce risk
portfolio
A collection of financial assets
prospectus
an investment report potential investors
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 bondholder is due
yield
yearly rate of interest on the bond
savings bond
Low denomination bond issued by the US government
securities and exchange commission (SEC)
Agency of government that regulates financial market
junk bond
Low rated, potentially higher-paying bond
capital-market
market where money is lent for longer than a year
money market
Marketware 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
while trying to find a job
seasonal unemployment
cause of harvest schedules or industries that shut down for the season
cyclical unemployment
during economic downturns
structural unemployment
workers skills don’t match the jobs that are available
underemployed
being overqualified or working part time when you want to work full-time
inflation
General increase in prices
inflation rate
percentage rate of change in price level overtime
wage price spiral
rising wages cause higher prices and higher prices cause higher wages
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 local, state, and federal taxes
