The Orgins of Money Flashcards
barter economy
An economy in which trades are made in goods and services instead of money
transaction costs
The costs associated with the time and effort needed to search out, negotiate, and complete an exchange
money
A good that is widely accepted in exchange and in the repayment of debt
medium of exchange
Anything that is generally acceptable in exchange for goods and services
unit of account
A common measurement used to express value
store of value
something with the ability to hold value over time
fractional reserve banking
A banking arrangement in which banks hold only a fraction of their deposits and lend out the remainder
labor union
An org that seeks to increase the wages and improve the working conditions of its members
closed shop
An organization that hires only union members
Taft-Hartley Act
An act, passed in 1947 by the U.S. Congress, that made the closed shop illegal and allowed states to pass right-to-work laws. These laws prohibit employers from making union membership a condition of employment
union shop
An org that requires employees to join the union within a certain period after being hired
strike
A work stoppage called by union members to put pressure on an employer
right-to-work law
A state law that prohibit the practice of requiring employees to join a union to work
nominal wage
The main difference between nominal wage and real wage is that nominal wage is the amount of money paid, while real wage is the amount of money paid after adjusting for inflation
Demand for union labor
- Demand for Union Labor
- if the demand for a good decreases then the demand for the labor that produces the good decreases
