Unit 3 Review Labor/Unions Differences in Pay Unemployment Government Spending Taxes

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

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

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

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

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

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

What are the government’s two largest budget items? What are the government’s two largest budget items? Social Security Social Security Defense Defense

Who cooperates in creating the federal budget? Who cooperates in creating the federal budget? Congress and President Congress and President

What happens when the budget is in committee? What happens when the budget is in committee? Debated Debated Amended Amended Voted on Voted on

What agency helps the President prepare the budget? What agency helps the President prepare the budget? Office of Management and Budget (OMB) Office of Management and Budget (OMB)

What agency helps Congress analyze the proposed budget? What agency helps Congress analyze the proposed budget? Congressional Budget Office (CBO) Congressional Budget Office (CBO)

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

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

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

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

What is an example of mandatory spending? What is an example of mandatory spending? Social security Social security Medicare Medicare Medicaid Medicaid

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

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

What is our current national debt? What is our current national debt? $15 trillion $15 trillion

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

Why do women get paid almost 25% less than men on average? Why do women get paid almost 25% less than men on average? They choose jobs with more flexibility They choose jobs with more flexibility

What two ways can decrease national debt? What two ways can decrease national debt? Increase taxes Increase taxes Decrease government spending Decrease government spending

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

What do the following have in common? What do the following have in common? Redistributes income Redistributes income Transfers purchasing power from private to public sector Transfers purchasing power from private to public sector Reduces incentives to work and invest Reduces incentives to work and invest Effects of national debt Effects of national debt

What is the main reason for the decline in union membership What is the main reason for the decline in union membership Their own historical success Their own historical success

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

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

Give an example of the government redistributing wealth as it taxes one group to benefit another group: Give an example of the government redistributing wealth as it taxes one group to benefit another group: Social Security Social Security Welfare Welfare Subsidies Subsidies Federal grants to states Federal grants to states

Which is NOT a federal tax? Which is NOT a federal tax? 1. Income tax 2. Corporate tax 3. Sales tax 4. Social Security tax #3 #3

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

From where does the ultimate power of a labor union come? From where does the ultimate power of a labor union come? The right to strike The right to strike

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

What type of union is the Screen Writers Guild (a union for writers of screen plays for movies)? What type of union is the Screen Writers Guild (a union for writers of screen plays for movies)? Craft union Craft union Trade union would work also Trade union would work also

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

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

Under the traditional theory of wages, what determines workers’ wages? Under the traditional theory of wages, what determines workers’ wages? The market The market Supply and Demand Supply and Demand

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

What creates a permanent surplus of labor? What creates a permanent surplus of labor? Minimum wage set above market equilibrium for wages Minimum wage set above market equilibrium for wages

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

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

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

According to the traditional theory of wage determination, what would increase a worker’s wages? According to the traditional theory of wage determination, what would increase a worker’s wages? Training Training Education Education Investing in their human capital Investing in their human capital Specialization Specialization

What unemployment rate can a country have while operating at full employment? What unemployment rate can a country have while operating at full employment? 5% 5%

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

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

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

What do the following have in common? What do the following have in common? Employees without regular pay Employees without regular pay Business profits are down Business profits are down Customers are inconvenienced by poorer service or unavailable products Customers are inconvenienced by poorer service or unavailable products Local communities/economies can be hurt by less demand throughout the local economy Local communities/economies can be hurt by less demand throughout the local economy All hurt by a strike All hurt by a strike

Why did Tiger Woods make almost $112 million in 2009? Why did Tiger Woods make almost $112 million in 2009? Demand is very high and supply is very low for what he is able to do Demand is very high and supply is very low for what he is able to do

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