Chapter 20 Review

Demand on goods and services increases. What else increases?

inflation

Expansion

period in a business cycle during which the economy is growing

Inflation

rise in the costs of goods and services

What is the purpose of unions?

The purpose of labor unions was to bargain for better conditions for workers.

Contraction

a period in a business cycle during the economy is slowing.

You need to know what the book talk about concerning pre great depression. What did economists believe?

Before the Great Depression, most economists believed the business cycle should be left alone. They argued that it was unwise for the government to try to control inflation, boost production, or end unemployment. This hands-off philosophy was based on the idea that the free market was self-correcting. Economists believed that the problems that came with the business cycle would solve themselves. If prices rose too high, people would stop buying goods and services until prices fell again.

How do consumers contribute to the country's economic problems?

Consumers contribute to the country's economic problems by not saving money and spending it on products that are not being manufactured in America.

Need to know the 4 things that employers get to combat strikes.

1. Lock workers out 2. Send lists of names active in unions to other employers and asked not to hire them (blacklist) 3. Business owners often hired armed guards to protect their property from striking workers. 4. Employers asked government officials for help.

Know the definition of Collective Bargaining and Picketing.

Collective Bargaining- A process in which representatives of a labor union and an employer work to reach an agreement about wages and working conditions Picketing- Marching in front of one's workplace often with signs urging others not to work for the company or buy it's goods or services

Know the components of the monetary and fiscal policy.

Fiscal policy-a government's policy of taxation and spending Monetary policy-a government policy of regulating the amount of money in the economy

What type of purchase is not good for the economy?

Foreign purchase is not good for the economy.

Popular jobs in each era?

In the beginning many people were involved in agriculture thus we had a traditional economy with many sole-proprietorship. In the 1950's manufacturing made up many areas of the job force and today services make up the majority.

What is the difference between the means of production and the cost of production.

Production costs include any expenses associated with business activity for an organization. Manufacturing costs only include the expenses of actually producing the product

What is the AFL-CIO?

The AFL-CIO is The main purpose of the AFL-CIO is to bring fairness and dignity to the workplace and secure social and economic equity.

Know the differences between the Landrum Griffin Act, the Taft-Hartley, and Wagner Act all three of those.

The Landrum-Griffin Act- requires unions to file finance reports with the national government. The Taft-Hartley Act- protects the national welfare by allowing the president to order a delay on any strike for 80 Days if the strike seems to threaten the welfare of the nation. Wagner Act- The Wagner Act is formally known as the National Labor Relations Act. It guarantees the right of workers to organize and bargain collectively through representatives. iT also provides specific ways of settling disputes between labor unions and employers. Fair Labor Standards Act- The FLSA establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Conditions of factories (know all them) and free labor day?

Thousands of workers took on factory jobs for factories hiring hundreds of men, women, and children. Conditions were extremely difficult with a six day work week and a 12 to 16 hour work day. On top of this many factories had dangerous places. There would be exposed belts where hair or clothes would be caught and serious injuries or deaths became common. There was also much dust, horrible heating and cooling, and poor lighting. They had no insurance or sick days so saving money was challenging because wages were low.

When the Federal Reserve lowers interest rates what happens?

When the Federal Reserve lowers interest rates more money is in circulation for citizens. Lowering taxes or interest rates leads to the creation of more jobs because this puts less of a strain on those who are affected by recession which allows business managers to spend more money which encourages business to meet demands. As production increases more workers will be needed. This happens in times of recession.

What happens when productivity rises?

When wages rise so does the profit produced that in turn lowers prices. American factories flourish and with it the economy. ***Higher wages, higher profits, and lower prices

Business Cycle

economic patterns in which a free market economy goes through periods of prosperity and depression

Make a graph of the business cycle. ( Know how to do it) p.493 or 498

labeling and putting definitions of labels are bonus.)

What happens when inflation rises?

Lose workers, or make them work An economic growth causes inflation which harm workers who will have the same wages but the money they make will be worth less causing the standard of living to decline. In turn companies will loose workers or employers will attempt to increase productivity in the workplace. The federal reserve takes money out of circulation to safeguard against inflation.

Know the difference between mediation and arbitration.

Meditation- A method of settling disputes between labor unions and employers through the use of a third party who offers a non binding solution. Arbitration- A method of settling differences between labor unions and employers in which a third party's must be accepted by both sides.

What are all causes of economic problems?

Ones that it is>>> The money supply Government spending productivity

What was FDR's new deal program?

The response to the great depression was FDR's establishment of the New Deal. It was the start of the present Social Security system. The system was established to give payment to retired citizens and to help other in need. Unemployment compensation was created to provide workers with some money when they had lost their jobs.

What was the government's response to the great depression?

The response to the great depression was FDR's establishment of the New Deal. It was the start of the present Social Security system. The system was established to give payment to retired citizens and to help other in need. Unemployment compensation was created to provide workers with some money when they had lost their jobs. During the Great Depression in the 1930s, millions of unemployed people were willing to accept any pay, no matter how low. First sign was in 1929 with stocks falling, and by 1932 businesses produced half as much as they had in 1929.However, businesses could not afford to hire workers, even at low wages. Those businesses that did survive during the Depression did not expand. After all, there was no point in producing more goods when few people had enough money to buy them. Finally, many people were willing to allow the government to take steps to improve the economy. President Franklin D. Roosevelt established a program called the New Deal that included many approaches to improving the economy.