Econ Chapter 8 & 9

What was one reason union membership rose in the 1930s?

Congress passed pro-union laws

The law that set the minimum wage is the...

Fair Labor Standards Act of 1938

What is a merger?

One company combines with another company (ex: two companies join bc one company supplies the other with raw materials)

Who founded the American Federation of Labor (AFL) in 1886?

Samuel Gompers

conglomerate

a business combination merging more than 3 businesses that make unrelated products

cooperative

a business organization owned and operated by a group of individuals for their mutual benefit

partnerships

a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

sole proprietorship

a business owned and managed by a single individual

stock

a certificate of ownership in a corporation

closely held corporation

a corporation that issues stock to only a few people, often family

bond

a formal contract to repay borrowed money with interest at fixed intervals

What happens in a publicly held corporation?

a large number of stockholders can buy and sell stock

corporation

a legal entity owned by individual stockholders

right-to-work law

a measure that bans mandatory union membership

articles of partnership

a partnership agreement

What is a fringe benefit?

a payment other than wages or salaries

What is considered a person who is part of the labor force?

a person who has lost a job but is looking for one

What type of workers is likely to earn the highest wage?

a professional worker (white-collar jobs)

business franchise

a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area

mediation

a settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept

arbitration

a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides

labor union

an organization of workers that tries to improve working conditions, wages, and benefits for its members

strike

an organized work stoppage intended to force an employer to address union demands

glass ceiling

an unofficial, invisible barrier that prevents women and minorities from advancing in business dominated by white men

In a limited liability partnership, all partners...

are limited from personal liability in certain situations

business license

authorization to start a business issued by the local gov

The most important decisions in a corporation are made by the...

board of directors

Your uncle owns a convenience store that has branches nationwide. His store is an example of a...

business franchise

Which of the following most accurately describes the change in average weekly earnings since 1980? a. Average weekly earnings have dropped for everyone b. Average weekly earnings have risen for everyone c. Average weekly earnings have risen for college-educated workers only d. Average weekly earnings have soared for people without college degrees

c. Average weekly earnings have risen for college-educated workers only

A merger that combines more than three businesses that make unrelated products is called a...

conglomerate

What type of cooperative sells merchandise to its members at reduced prices?

consumer

Another name for temporary work is...

contingent employment

service cooperative

cooperative that provides a service rather than a good

A corporation can offer as many shares of stock as are allowed by the...

corporate charter

Which type of business organization has shareholders?

corporation

You are looking for a job with many fringe benefits. You therefore probably want to work for a...

corporation

publicly held corporation

corporation that sells stock on the open market

Most large businesses are...

corporations

What type of work is growing fastest in the United States?

information-related

nonprofit organization

institution that functions much like a business, but does not operate for the purpose of generating profits

What is an advantage of a sole proprietorship?

it is the least regulated form of business organization

professional labor

labor that requires advanced skills and education

semi-skilled labor

labor that requires minimal specialized skills and education

unskilled labor

labor that requires no specialized skills, education, or training

skilled labor

labor that requires specialized skills and training

multinational corporation

large corporation that produces and sells its goods and services throughout the world

zoning laws

law in a city or town that designates separate areas for residency and for business

Liability is the...

legal obligation to pay debts

certificate of incorporation

license to form a corporation issued by state government

What is an example of a semi-skilled worker?

lifeguard

You decide to go to a consumer cooperative to buy supplies for your class party. Prices are cheaper there mainly because consumer cooperatives...

make large purchases

assets

money and other valuables belonging to an individual or business

Good Wireless and Better Wireless merge to form Best Wireless. The federal government watches this merger carefully for evidence of a...

monopoly

The decision that a mediator reaches during settlement talks is...

non-binding

business association

nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses

professional organization

nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations

trade association

nonprofit organizations that promote the interests of a particular industry

What is an advantage of a sole proprietorship?

not highly regulated by the government

In a limited partnership, who is the general partner?

only one partner is required to be general partner

limited liability partnership

partnership in which all partners are limited partners

limited partnership

partnership in which only one partner is required to be a general partner

general partnership

partnership in which partners share equally in both responsibility and liability

fringe benefit

payment other than wages or salaries

Almost all nonprofit organizations provide what?

provide services rather than goods

Collective bargaining means that...

representatives of unions and companies negotiate new labor contracts

consumer cooperative

retail outlet owned and operated by consumers

A disadvantage of a franchise is that the franchise owner must...

sacrifice some freedom in return for the parent company's guidance

In return for a fee to a franchiser, a business owner receives the right to...

sell the franchiser's goods and services

One of the ways a corporation can raise money is by...

selling stock on the stock market

royalty

share of earnings given as payment

The most common form of business organization is the...

sole proprietorship

white-collar worker

someone in a professional or clerical job who usually earns a salary

blue-collar worker

someone who works in an industrial job, often in manufacturing, and who receives wages

What does The Bureau of Labor Statistics (BLS) of the United States Department of Labor do?

surveys households to assemble information on the workforce each month.

Which job is categorized as professional and would most likely earn a salary?

teacher

contingent employment

temporary jobs or part-time jobs

horizontal merger

the combination of two or more firms competing in the same market with the same good or service

vertical merger

the combination of two or more firms involved in different stages of producing the same good or service

The invisible barrier that exists when highly skilled women are continually denied promotions to high- level positions in an industry dominated by men is called...

the glass ceiling

liability

the legally bound obligation to pay debts

dividend

the portion of corporate profits paid out of stockholders

featherbedding

the practice of negotiating labor contracts that keep unnecessary workers in a company's payroll

collective bargaining

the process in which union and company representatives meet to negotiate a new labor contract

When an employer believes that job applicants are intelligent and hardworking based upon their completion of college, it is an example of...

the screening effect

learning effect

the theory that education increases productivity and results in higher wages

screening effect

the theory that the completion of college indicates to employers that a job applicant is intelligent and hard-working

What is meant by productivity?

the value of output

equilibrium wage

the wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market

A labor union is an organization that...

tries to improve working conditions, wages, and benefits for its members

A partnership is a business organization owned by...

two or more individuals

productivity

value of output produced

When is there an equilibrium wage?

when there is no excess in the demand for workers or in the supply of workers

Uniform Partnership Act

act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership

producer cooperative

agricultural marketing cooperatives that help members sell their products

labor force

all nonmilitary people who are employed or unemployed

If a general partnership fails, who is responsible for the debts?

all of the parners

What did The Taft-Hartley Act in 1947 do?

allowed states to pass right-to-work laws.

business organization

an establishment formed to carry on commercial enterprise

derived demand

demand that is derived from demand for another service or good

Museums, public schools, and YMCAs are all examples of...

exempt from paying income taxes