1. Chapter 13 The Economy and Work Key Terms

2. economy The social institution that ensures the maintenance of society through the production, distribution, and consumption of goods and services. primary sector production Workers extract raw materials and natural resources from the environment and use them without much processing.

3. secondary sector production Based on the processing of raw materials (from the primary sector) into finished goods. tertiary sector production The provision of services rather than goods.

4. capitalism Economic system characterized by private ownership of the means of production, from which profits can be derived through market competition and without government intervention. labor union A group of employees who join together to bargain with an employer or group of employers over wage, benefits and working conditions.

5. corporations Large-scale organizations that have legal powers, such as the ability to enter into contracts and buy and sell property, separate from their individual owners. transnational corporations Large corporations that are headquartered in one country but sell and produce goods and services in many countries.

6. oligopoly Exists when several companies overwhelmingly control an entire industry. shared monopoly Exists when four or fewer companies supply 50% or more of a particular market.

7. conglomerates Combinations of businesses in different commercial areas, all owned by one holding company. interlocking corporate directorates Members of the board of directors of one corporation who also sit on the board(s) of other corporations.

8. socialism An economic system characterized by public ownership of the means of production, the pursuit of collective goals, and centralized decision-making. mixed economy Combines elements of a market economy (capitalism) with elements of a command economy (socialism).

9. democratic socialism An economic and political system that combines private ownership of some of the means of production, governmental distribution of some essential goods and services, and free elections. occupations Categories of jobs that involve similar activities at different work sites.

10. primary labor market Comprised of high ‑ paying jobs with good benefits that have some degree of security and the possibility for future advancement. secondary labor market Comprised of low ‑ paying jobs with few benefits and very little job security or possibility for future advancement.

11. professions High ‑ status, knowledge ‑ based occupations characterized by abstract, specialized knowledge, autonomy, authority over clients and subordinate occupational groups, and a degree of altruism. marginal jobs Jobs that differ from the employment norms of the society in which they are located.

12. contingent work Part ‑ time work, temporary work, and subcontracted work that offers advantages to employers but may be detrimental to workers. subcontracting A form of economic organization in which a larger corporation contracts with other firms to provide specialized components, products, or services.

13. unemployment rate The percentage of unemployed persons in the labor force actively seeking jobs.