Economics Chapters 8-10
Terms
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- Macroeconomics
- the branch that deals with the economy as a whole; includes employment, gross domestic product, inflation, economice growth, and the distribution of income;
- civilian labor force
- men and women 16 and over who are either working or actively looking for a job; doesn't include armed forces, the prison population, and other institutionalized persons;
- union development from colonial time to the civil war
- unions were very small and comprised of skilled workers and strong bargaining power; public opinion was against union activity and in some places banned;
- union development from the civil war to the 1930's
- labor force became unified between immigrants and american-born; two types of unions came out: craft union or trade union, and industrial union;
- craft union
- also known as trade union; an association of skilled workers who perform the same kind of work;
- industrial union
- an association of all workers in the same industry, regardless of the job each worker performs;
- to strike
- to refuse to work until certain demands are met;
- picket
- to parade in front of the employer's business carrying signs about the dispute;
- lockout
- a refusal to let the employees work until management demands were met;
- a company union
- a union organized, supported, or run by employers; used to head off efforts by others to organize workers;
- courts views
- the courts had unfavorable attitudes toward unions; they persecuted the unions with the Sherman Antitrust Act of 1890, until the Clayton Antitrust Act (1919) was passed;
- Great Depression
- the greatest period of economic decline and stagnation in the United States history; began with the collapse of the stock market in October 1929;
- Norris-LaGuardia Act of 1932
- prevented federal courts from issuing rulings against unions engaged in peaceful strikes, picketing, or boycotts;
- National Labor Relations Act or Wagner Act
- established the right of unions to collective bargaining; created the National Labor Relations Board which had the power to police unfair labor practices;
- Fair Labor Standards Act
- (1938) fixes a federal minimum wage for workers and extablishes overtime pay; applies to businesses that engage in interstate commerce; prohibits oppressive child labor;
- Unions since World War II
- viewed positivly during the depression but after WWII, labor unions were considered communist action; too many strikes and the public began to feel that management soon became the victim;
- Labor-Management Relations Act or Taft-Hartley Act
- put limits on what unions can do in labor-management disputes; gave employers the ruight to sue unions for breaking contracts, and prohibits unions from making union membership a condition for hiring; cooling-off period and right-to-work laws;
- cooling-off period
- 80 day long period where the federal courts could delay a strike in the case of a national emergency;
- right-to-work law
- state law making it illegal to force workers to join a union as a condition of employment, even though a union may already exist at the company;
- The Labor-Management Reporting and Disclosure Act or Landrum-Ghriffin Act
- protected individual union members from unfair actions of unions and union officials; file fiancial reports with the gov't and limit the amount of money they can borrow from the union;
- American Federation of Labor (AFL)
- started in the late 1800's as a craft union; soon added several industrial unions;
- independant unions
- unions that aren't a part of the AFL-CIO (American Federation of Labor and Congress of Industrial Organizations);
- closed shop
- where the employer agress to hire only union members; gives union the power to determine who is hired;
- union shop
- workers do not have to belong to a union to be hired, but must join soon after and remain a member for as long as they keep their jobs;
- modified union shop
- workers do not have to belong to a union to be hired and cannot be made to join one to keep their jobs; if you join, they you have to remain a member;
- agency shop
- aggreement that does not require a worker to jion a union as a condition to get or keep a job, but does require the worker to pay union dues to help pay collective bargaining costs;
- collective bargaining
- where the two sides meet and both compromise to reach an agreement;
- grievance procedure
- a provision for resolving issues that may come up later;
- mediation
- the process of bringing in a neutral third person to help settle a dispute; not binding;
- arbitration
- a process in which both sides agree to place their differences before a third party whose decision will be accepted as final;
- fact-finding
- an agreement between union and management to have a neutral third party collect facts about a dispute and present a nonbinding recomendations;
- infunction
- a court order not to act, like in a strike;
- seizure
- a temporary takeover of operations-to allow the gov't to negotiate with the union;
- unskilled labor
- workers who lack training and skills
- semiskilled labor
- some mechanical abilities to poerate machines that require a minimum amount of training;
- skilled labor
- workers who can operate complex equipment and can perform their tasks with little supervision;
- professional labor
- those with the highest level of konwledge based education and managerial skills;
- non competing labor grades
- catagories of labor that don't compete with each other;
- wage rate
- a standard amount of pay given for work performed
- traditional theory of wage determination
- supply and demand for a workers skills determine the wage;
- equilibrium wage rate
- the wage rate that leaves neither a surplus nor a shortage in the labor market
- signaling theory
- the idea that employers are willing to pay more for people with certificates, diplomas, degrees and other signals;
- giveback
- a wage, fringe benefit, or work rule given up when a labor ccontract is renegotiated;
- reasons for lower pay for women
- human capital differences; occupation distribution; discrimination;
- Equal Pay Act
- prohibits wage and salary discrfimination for jobs that require equivalent skills;
- Civil Rights Act
- set up EEOC which investigates charges of discrimination;
- comparable worth
- principle that people should recieve equal pay for work that is just as demanding;
- set-aside contracts
- a contract for a certain group of workers;
- part-time workers
- those who work less than 35 hours a week;
- real or constant dollars
- dollars that are adjusted in a way that removes the distortion of inflation;
- base year
- a year that serves as a comparison for all other years;
- economic impact of taxes
- resource allocation, behqavior adjustment: sin tax, productivity and growth;
- criteria for effective taxes
- equity, simplicity, and efficiency;