1B Test #4

The unionization rate in the United States has been

Declining for over 40 years.

3 Strategies to reduce poverty

1. Redistribute income within border. 2. Redistribute across nations. 3. Economic Growth.

The unionization ratio grew most rapidly in the United States between

1935 and 1945.

Union Objectives

1. To raise the wages of union members. 2. Also, improve working conditions, job security, and other non-wage form of compensation, such as retirement, benefits, vacation time, and health insurance

According to official U.S. statistics, the U.S. poverty rate has been approximately _____ percent for the last 40 years.

11 to 15

Determining Povtery

only cash income is counted.

The opportunity cost of working is

the amount of leisure time that must be given up.

If Lauren's substitution effects outweigh her income effects, her labor supply curve will

Bend backward.*

When compared to those in poor countries, poor people in the United States receive

Far more goods and services.

The general approaches to global poverty reduction include all of the following except

Government growth.

Replacement Workers

How easily one can be replaced. This determines union power.

Higher wage rates allow a person to reduce the hours worked without losing income. This is known as the

Income effect.

One of the keys to reducing poverty is

Increased economic growth.

The price paid for the use of money is defined as the

Interest rate.

The United Farm Workers have been unsuccessful for decades in their attempts to organize California's strawberry pickers because the workers

Know that replacement workers are readily available.

If leisure activities become more attractive, there will be a

Leftward shift of the labor supply curve.*

Severe Poverty

Less than $2 a day.

If there is an increase in the number of workers who want to work as accountants, there will be a

Rightward shift of the labor supply curve.

Which of the following is an example of a financial intermediary?

Stock markets.*

Dividends are

The amount of corporate profit paid out for each share of stock.

The owners of a corporation are

The board of directors.

Capital Gain

an increase in the market value of an asset.

Kip will work fewer hours if his salary increases. For Kip, the ___________ effect must outweigh the __________ effect.

income; substitution

Which of the following is an example of a financial intermediary?

Banks.

If wages are relatively high, the individual labor supply curve may

Bend backward.

Workers with a particular skill are represented by

Craft unions.

The annual interest payment divided by the bond's price is the

Current yield.

Collective Bargaining

Direct negations between employers and unions to determine labor-market outcomes.

In-kind Tranfers

Direct transfer of goods and services rather than cash.

Industrial Union

Include workers in a particular industry.

Workers who organize themselves along industry lines are represented by

Industrial unions.

Which of the following is true about income inequality?

Inequality tends to be greatest in the poorest countries.

Financial Intermediary

Institution that makes savings available to dissavers. Ex: Banks, pension funds, bond markets, stock markets.

Wal-Mart

Largest employer.

Poverty Rate

Percent of the population counted as poor. In U.S= 11-15%

Liquidity is

The ability of an asset to be converted to cash.

Bond

A certificate acknowledging a debt and the amount of interest to be paid each year until repayment.

An institution that makes savings available to investors is known as

A financial intermediary.

The refusal to work by unionized labor is an example of

A strike.*

Liquidity

Ability to convert an asset into cash.

An individual's labor supply curve

Always slopes upward.*

Which of the following statements is true?

American poverty is less severe than global poverty.

Retained Earnings

Amount of corp. profits not paid out in dividends.

Dividend

Amount of corporate profits paid out for each share of stock.

In 2014 inflation adjusted U.S. poverty threshold was

An annual income of less than $29,000 for a family of four.

Union Shops

An employment setting in which all workers must join the union within 30 days after being hired. Penalties, such as loss of seniority or pension rights ensure that workers will not undermine the union.

The World Bank defines severe poverty as

An income level of less than $2.00 per person per day.

Income Effect of Wages

An increased wage rate allows a person to reduce hours worked without losing income.

Substitution Effect of Wages

An increased wage rate encourages people to work more.

The first sale to the general public of stock in a corporation is referred to as

An initial public offering.

Poverty Threshold

Annual Income of less than $24,000 for family of 4 (2007, inflation adjusted)

Craft Union

Represent workers with a particular skill.

Walmart, the largest employer in the United States, employs

Approximately 2 percent of the labor force.*

When a strike or a lockout occurs,

Both labor and management suffer.

Current yield

Rate of return on a bond. Formula: Divide the annual interest payment by the current market price of the bond

Which of the following is a critical key to reducing poverty in the poorest nations?

Reduced population growth.

Par Value

The face value of a bond; the amount to be repaid when the bond is due.

Initial Public Offering

The first insurance (sales) to the general public in stock.

The value of an hour of leisure can best be estimated as

The hourly wage that could have been earned.

The poverty rate is

The percentage of the population that is counted as poor.

For an upward-sloping labor supply curve, the quantity of labor supplied varies directly, ceteris paribus, with

The wage rate.

Treasury bonds typically have lower coupon rates than corporate bonds because

There is a lower risk that the U.S. Treasury will default.

The percentage of the labor force that belongs to a union is known as the

Unionization ratio.*

The opportunity cost of working is the

Value of leisure time that must be given up.

When management shuts down a plant and does not allow workers to perform their jobs, there is a

Walkout.

Extreme Poverty

World Bank income standard of less than $1 a day.

Labor Unions don't

want more jobs, actually want few jobs with higher wages.