1. Businesses, Competition and Unemployment

2. Labor unions are?
A group of workers or laborers who bond together to have a better chance at higher pay and better working conditions.
Collective Bargaining- When the labor union

4. Two types of labor unions
Craft Unions- Workers with the same skills such as printers union or teachers union.
Industrial union- Different skilled workers from the same industry. Automakers union

5. A closed shop …
Means that all workers must belong to the union or they can not work in that industry.
Mainly Northern states
Very little in the south

6. Right to work laws…
Stops mandatory participation in the union. You can or can not join the union.
Stops most unions from organizing.
NC has right to work laws.

8. Unions negotiate using __which means
Collective bargaining.
The unions negotiate salary and benefits for all union members not just one.
There is no single employee negotiations.

10. Two tools Strikes- withhold labor
Boycott- ask people not to buy the goods and services from that company.

11. Management can…
Use lockouts to negotiate with labor

12. Part II: Competition
Our market (capitalistic)economy requires their to be competition.
The more the competition the better the prices and quality of the goods and services.
The less competition than business win and the prices will be higher and less quantity.

13. Perfect Competition
An industry that has a lot of competitors and no one company has control.
Gas stations (in Raleigh) on every corner. You look for the lowest price.
Do you know who you are buying gas from?

14. Imperfect Competition
Industries where one or more companies have to much control of the industry.
There are four types of imperfect competition.

15. Monopoly One company controls the market. Microsoft
Can be considered illegal and torn apart if they use their monopoly to force others out or drop prices when companies enter the industry.
Mama Bell

16. Natural Monopoly
When only one company can afford to operate in an area.
Cable
Electricity.
The government allows this to occur
The government will regulate the price and quantity.

17. Oligopoly
When a few companies control the market.
Coke and Pepsi

18. Monopolistic competition
An industry where everyone has the same basic product and certain ones control the industry due to the name.
Computer Industry
Lenovo/IBM, Dell, Mac

19. What does competition give us?
Perfect Competition is good because…
We control the market. Low prices high quality.
Imperfect competition is bad because it …
The producers control the competition. High prices, low quality

20. What is the difference between public and private Goods.
Private goods are made by people and their firms
Public goods are anything that the government helps to fund through taxes.
Duke, Ravenscroft, Bush Gardens
UNC, Sanderson, Yellowstone Park

21. GDP (Gross Domestic Product) GNP (Gross National Product)
Big figure that tells the value of our nation per year. What we make and sell
2016 United States Debt
The number is useless
Nominal GDP is the number without regard to inflation.
Real GDP is our countries worth adjusted for taxes.

22. What is the business Cycle
A curve that shows our cycle over time.
Peak
Contraction Expansion
Trough

23. The good
Expansion
Increase in sells of houses, inventory, people are happy.
Salaries are on the rise, People buy luxuries and wants
Employment is on the rise
Peak
It is as good as it gets.
Employment is at the highest levels

24. The bad
Contractions
People stop buying house, inventories slows down, People begin to save instead of spend. People have low confidence.
Unemployment is on the rise
People by needs only
Trough
The low of the lowest: Foreclosures, high unemployment,

25. Unemployment
All people who are 16 years old or older and are actively seeking a job and can not find a job.

26. 1st type of unemployment
Frictional Unemployment: When a person leaves their job in order to find another job.
This is a good type of unemployment because it shows confidence in our system.

27. 2nd Type of Unemployment
Seasonal Unemployment- When a person has a job for a season. Farmer, Oil line worker
This is not bad because the employee has time to save for the time they are not working.

28. 4 Types of Unemployment
Cyclical unemployment is created by a downturn in the economy .People are laid-off by their company.
Unemployment is not permanent but is long and creates great hardships for people

29. 4 Types of Unemployment
Structural unemployment is when an industry is eliminated and people have to be retrained in another vocation.
The discouraged worker is created by structural unemployment. This is a person who’s life is incredibly effected by these events.

30. Inflation
The annual increase in prices ( deflation is the decrease in prices ).
A good inflation rate is 3%. This means our economy is growing through demand pull inflation.

31. Inflation Inflation is measured by:
Consumer Price Index- A listing of products in all categories. This index places value on how much they are bought in the society
Inflation rate is a comparison between another year. That year is called the base year.
The base year is given the value of 100
Turn to page 287

32. Types of Inflation
Demand-pull inflation- Growth in prices due to the increase in spending. This is the best form of inflation because it shows that our salaries have increased past supply lines
Cost-push inflation- Growth in prices because a factor of production increases.

33. Wealth vs High Income Income is what you make Wealth is what you store
Poverty rate is based on the income of a family of four:
,500
,500

34. Monetary Supply A good money supply = a slow growth of inflation
If the money supply goes quicker than production then the money supply will create an increase in the inflation rate.
If the money supply grows slower than production than the economy can grow though a period of deflation ( salaries will decrease or people will be laid off )