Econ Ch 9 study guide

What are the two things that determine how much money a person will be paid?

- the demand for the good that you produce -your productivity

What national holiday was created in the 1800's to honor all of the hard work that the United States was built on?

Labor Day- first Monday in September

What's the term used to describe when a labor union and business owners use a non-biased third party to settle their dispute?

arbitration

A job that has a low supply of workers and high demand for the service will always receive this type of wage:

large wage ex. not everyone can be a doctor, but everyone needs to see one

When was the federal minimum wage created? Who created this law?

late 1930's (Great Depression) by FDR

The agreement that these characters make in a labor market is known as a:

wage/salary

What is the current federal minimum wage in the United States?

$7.25

Explain three reasons why certain politicians are for raising the minimum wage.

1. Cost of living has gone up 2. Extra money will stimulate the economy 3. Workers will become more productive

Explain three reasons why certain politician are traditionally against the raising of minimum wage.

1. They believe unemployment will actually rise 2. Prices will rise 3. affects small businesses negatively

When was the last time that the federal minimum wage was raised? How have things changed since then?

2009- prices of everyday goods have increased

How many states have already changed their minimum wage to above $7.25? Who has the highest in the country?

29 states.Washington has highest

How did Walter Reuther impact the labor movement in the 1950's? Describe some things that he fought for?

He was the founder of the united auto workers, he fought for better working conditions and higher wages for people in the car manufacturing industry.

When did labor unions become popular in the United States? How has the labor market changed since then?

Labor unions took off in the 20th century because of the high mount of blue collar workers (factory workers, manual labor), now our labor market can be best described as made up of white collar jobs (lawyers, doctors)

Describe the difference between a blue collar job and a white collar job. Why are workers with a white collar job less likely to join a labor union?

a blue-collar job is something that usually involves manual labor, while a white-collar job is more likely a job in the service industry

Why do low skill workers traditionally make less money than someone who has received a college diploma?

because they are easy to replace and not as skilled/typically less productive

The term that is used to describe the negotiating that goes on between labor unions and business leader is:

collective bargaining

Which characters in the labor market follow the law of supply?

employees supply labor

Who are the two characters that make up the labor market?

employers and employees

Which characters in the labor market follow the law of demand?

employers demand labor

Minimum wage that is enforced in a labor market is an example of a price __________________

floor- can't go any lower because of government regulation

How many times has the federal government raised minimum wage in the United States?

it has increased 22 times since 1938

This is an organization that fights for better working conditions and higher pay in the labor market:

labor unions

Draw and Label a Labor Market Graph

makes a big X- supply going up and demand going down. Quantity of workers on X axis and wage on Y axis

How can a person improve their productivity in the field of labor?

natural talent, work ethic and quality and length of your education

When there is a surplus of workers in the labor market, what can be expected to happen to the wage?

the wage will naturally decrease

When there is a shortage of workers in the labor market, what can be expected to happen to the wage?

the wage will naturally increase

The supply of workers increased in a FedEx warehouse, what would most likely happen to the equilibrium wage?

their wage would naturally decrease

The demand for workers at Bed, Bath, and Beyond increase during holiday season, what will most likely happen to the equilibrium wage of this employee?

their wage would naturally increase to attract potential employees

Describe how the frequency of strikes has changed over the past 50 years and why you think this has happened.

unions do not go on strike as often because the amount of members have decreased and they do not possess the influence they had in the past.