Unit 3 Test

Question 1

the process of bringing in a neutral 3rd person or people to help settle a dispute

Answer 1

mediation

Question 2

the ability and willingness of workers to relocate in markets where wages are higher

Answer 2

labor mobility

Question 3

the belief that people should be taxed according to their ability to pay, regardless of the benefits they receive

Answer 3

Ability to Pay Principle of Taxation

Question 4

the most restrictive union arrangement in which the employer agrees to hire only union members

Answer 4

closed shops

Question 5

employees and employers share equally in paying the tax for Social Security and Medicare, which are educated from your paycheck

Answer 5

payroll taxes

Question 6

a tax on donations of money or wealth and is paid by the person who makes the gift

Answer 6

gift tax

Question 7

attached to a paycheck that summarizes income, tax withholdings, and other deductions

Answer 7

payroll withholding statement

Question 8

a union arrangement in which workers to not have to belong to the union to be hired, but must join soon after and remain a member for as long as they keep their jobs

Answer 8

union shops

Question 9

programs that must receive annual authorization

Answer 9

discretionary spending

Question 10

the total amount borrowed to finance the government’s deficit spending

Answer 10

federal debt

Question 11

created in response to the problems during the Great Depression

Answer 11

FDIC

Question 12

the intersection of supply and demand determines the wage rate that leaves neither a surplus nor a shortage in the labor market

Answer 12

equilibrium wage rate

Question 13

broad social programs the use established eligibility requirements to provide health, nutritional, or income supplements to individuals

Answer 13

entitlements

Question 14

federal demand notes that Congress was authorized to print in order to raise enormous sums of money to finance the Civil War

Answer 14

greenbacks

Question 15

created by Congress in 1913 to reform the banking system, the nation’s 1st true central bank

Answer 15

Federal Banking System

Question 16

spending in excess of revenues collected in a fiscal year

Answer 16

federal deficit

Question 17

the supply and demand for a worker’s skills and services determine the wage or salary

Answer 17

Traditional Theory of Wage Determination

Question 18

funds collected by one level of government that are distributed to another level of government for expenditures

Answer 18

intergovernmental revenues

Question 19

a tax that imposes a higher percentage rate of taxation on people with higher incomes

Answer 19

progressive tax

Question 20

the tax the government levies on the transfer of property when a person dies

Answer 20

estate tax

Question 21

the 2nd largest source of revenue for local governments, a tax on tangible and intangible possessions

Answer 21

property tax

Question 22

the division of the executive branch primarily responsible for assembling the budget under presidential guidelines

Answer 22

Office of Management and Budget

Question 23

a monetary standard that the United States has been on since 1934, under which the money supply can’t be converted into gold or silver by its citizens

Answer 23

Inconvertible Fiat Money Standard

Question 24

created to help finance the Civil War, was made up of banks chartered by the federal government, and shifted the paper money supply towards being entirely publicity-issued

Answer 24

National Banking System

Question 25

a depository institution that invests the majority of its funds in home mortages

Answer 25

Savings and Loan Association