Unit 3 ReviewUnit 3 Review

Labor/UnionsLabor/UnionsDifferences in PayDifferences in Pay

UnemploymentUnemploymentGovernment SpendingGovernment Spending

TaxesTaxes

Unemployment due to changes in the Unemployment due to changes in the business cycle:business cycle:

Cyclical unemploymentCyclical unemployment

Unemployment due to changes in Unemployment due to changes in weather conditions:weather conditions:

Seasonal unemploymentSeasonal unemployment

Joe lost his job when his employer Joe lost his job when his employer purchased a new computerized purchased a new computerized manufacturing system. What type of manufacturing system. What type of unemployment did he add to?unemployment did he add to?

Technological Technological

The computer replaced the The computer replaced the typewriter and put thousands typewriter and put thousands employed in the typewriter industry employed in the typewriter industry out of work due to:out of work due to:

Structural unemploymentStructural unemployment

What type of union would cover What type of union would cover chefs, bus boys, waitresses, cashiers, chefs, bus boys, waitresses, cashiers, and dishwashers?and dishwashers?

Industrial unionIndustrial union

What is the result of government What is the result of government spending more than it receives in tax spending more than it receives in tax revenue?revenue?

deficitdeficit

What are the government’s two What are the government’s two largest budget items?largest budget items?

Social SecuritySocial SecurityDefense Defense

Who cooperates in creating the Who cooperates in creating the federal budget?federal budget?

Congress and PresidentCongress and President

What happens when the budget is in What happens when the budget is in committee?committee?

DebatedDebatedAmendedAmendedVoted onVoted on

What agency helps the President What agency helps the President prepare the budget?prepare the budget?

Office of Management and Budget Office of Management and Budget (OMB)(OMB)

What agency helps Congress analyze What agency helps Congress analyze the proposed budget?the proposed budget?

Congressional Budget Office (CBO)Congressional Budget Office (CBO)

What type of spending accounts for What type of spending accounts for 2/3 of the federal budget?2/3 of the federal budget?

Mandatory Mandatory

What type of spending is most What type of spending is most difficult to change?difficult to change?

Mandatory Mandatory

What type of spending includes What type of spending includes military and education?military and education?

Discretionary Discretionary

What type of spending requires What type of spending requires annual approval for budget amounts?annual approval for budget amounts?

Discretionary Discretionary

What is an example of mandatory What is an example of mandatory spending?spending?

Social securitySocial securityMedicareMedicareMedicaid Medicaid

What is it called when government What is it called when government spending equals government spending equals government revenue?revenue?

Balanced budgetBalanced budget

When the government is operating in When the government is operating in the black, it means there is a the black, it means there is a government ________?government ________?

Surplus Surplus

What is our current national debt?What is our current national debt?

$15 trillion$15 trillion

When government spends more than When government spends more than it collects on tax revenue, it is it collects on tax revenue, it is engaged in:engaged in:

Deficit spendingDeficit spending

Why do women get paid almost 25% Why do women get paid almost 25% less than men on average?less than men on average?

They choose jobs with more flexibilityThey choose jobs with more flexibility

What two ways can decrease What two ways can decrease national debt?national debt?

Increase taxesIncrease taxesDecrease government spendingDecrease government spending

Another way government tries to pay Another way government tries to pay for its expenses is to get loans from for its expenses is to get loans from US citizens in the form of selling:US citizens in the form of selling:

Government bondsGovernment bonds

What do the following have in common?What do the following have in common?

Redistributes incomeRedistributes incomeTransfers purchasing power from private to Transfers purchasing power from private to

public sectorpublic sectorReduces incentives to work and investReduces incentives to work and invest

Effects of national debtEffects of national debt

What is the main reason for the What is the main reason for the decline in union membershipdecline in union membership

Their own historical successTheir own historical success

When trust breaks down between When trust breaks down between union representatives and union representatives and mangement, who can be called in to mangement, who can be called in to help settle the dispute?help settle the dispute?

Fact-finderFact-finder

An excise tax on a product the An excise tax on a product the government wants to discourage is government wants to discourage is called:called:

Sin taxSin tax

Give an example of the government Give an example of the government redistributing wealth as it taxes one redistributing wealth as it taxes one group to benefit another group:group to benefit another group:

Social SecuritySocial SecurityWelfareWelfareSubsidiesSubsidiesFederal grants to statesFederal grants to states

Which is NOT a federal tax?Which is NOT a federal tax?

1.1. Income taxIncome tax2.2. Corporate taxCorporate tax3.3. Sales taxSales tax4.4. Social Security taxSocial Security tax

#3#3

A neutral third party is called in to A neutral third party is called in to help solve a labor dispute over help solve a labor dispute over wages. The conditions of the wages. The conditions of the agreement the third party offers is agreement the third party offers is binding. Who was the third party?binding. Who was the third party?

ArbitratorArbitrator

From where does the ultimate power From where does the ultimate power of a labor union come?of a labor union come?

The right to strikeThe right to strike

What type of union would include What type of union would include only electricians from all 50 states?only electricians from all 50 states?

Trade unionTrade union

What type of union is the Screen What type of union is the Screen Writers Guild (a union for writers of Writers Guild (a union for writers of screen plays for movies)?screen plays for movies)?

Craft unionCraft unionTrade union would work alsoTrade union would work also

What category of labor would a fruit What category of labor would a fruit harvester (fruit picker) be harvester (fruit picker) be considered?considered?

unskilledunskilled

What theory of wages explains why a What theory of wages explains why a surgeon gets paid more than a trash surgeon gets paid more than a trash collector?collector?

Traditional theory of wagesTraditional theory of wages

Under the traditional theory of Under the traditional theory of wages, what determines workers’ wages, what determines workers’ wages?wages?

The marketThe marketSupply and DemandSupply and Demand

What is another word for a surplus of What is another word for a surplus of workers?workers?

Unemployment Unemployment

What creates a permanent surplus of What creates a permanent surplus of labor?labor?

Minimum wage set above market Minimum wage set above market equilibrium for wagesequilibrium for wages

What happens to unemployment What happens to unemployment rates as minimum wages are rates as minimum wages are increased?increased?

Unemployment increases Unemployment increases

What is it called when management What is it called when management responds to a strike by preventing responds to a strike by preventing the workers from returning to work the workers from returning to work until an agreement over the labor until an agreement over the labor dispute can be madedispute can be made

LockoutLockout

What is the refusal to buy from a What is the refusal to buy from a business to pressure it to give in to business to pressure it to give in to labor demands called?labor demands called?

Boycott Boycott

According to the According to the traditional theory of traditional theory of wage determinationwage determination, what would , what would increase a worker’s wages?increase a worker’s wages?

TrainingTrainingEducationEducation Investing in their human capitalInvesting in their human capitalSpecializationSpecialization

What unemployment rate can a What unemployment rate can a country have while operating at full country have while operating at full employment?employment?

5%5%

What union arrangement requires What union arrangement requires the employee to join the union after the employee to join the union after a period of time?a period of time?

Union shopUnion shop

What union arrangement does NOT What union arrangement does NOT require union membership to work, require union membership to work, but union dues are taken regardless?but union dues are taken regardless?

Agency shopAgency shop

What union arrangement has What union arrangement has disappeared due to the passage of disappeared due to the passage of Right to Work laws?Right to Work laws?

Closed shopClosed shop

What do the following have in common?What do the following have in common?

Employees without regular payEmployees without regular pay Business profits are downBusiness profits are down Customers are inconvenienced by poorer Customers are inconvenienced by poorer

service or unavailable productsservice or unavailable products Local communities/economies can be hurt by Local communities/economies can be hurt by

less demand throughout the local economyless demand throughout the local economy

All hurt by a strikeAll hurt by a strike

Why did Tiger Woods make almost Why did Tiger Woods make almost $112 million in 2009?$112 million in 2009?

Demand is very high and supply is Demand is very high and supply is very low for what he is able to dovery low for what he is able to do

According to the theory of negotiated According to the theory of negotiated wages, why do some workers get wages, why do some workers get paid more than others working in the paid more than others working in the same industry?same industry?

Labor unions Labor unions