Government Influence and Labor Markets

Labor Union Membership in the US 1930-2000 ccording to the chart, union membership peaked around ✔ 194519651970. Membership began steadily to increase✔ declineafter 1970. In 2000, about 2016✔ 12% of workers were members of a union.

1945, decline, 12

How were the earliest benefits of the Industrial Revolution distributed between factory owners and workers?

Factory owners benefited greatly, while conditions for workers were poor.

What are the qualities of a free-enterprise system? Check all that apply.

Free-enterprise systems encourage free interaction between producers and consumers. - Governments create policies to protect the safety of citizens and fairness in the market. - In a free-enterprise system, ideals and needs must be balanced.

Background information: In 2012, President Obama and Congress debated the issue of taxes and tax cuts. In this speech, President Obama is discussing the effects of a potential tax increase. Which statements best communicate the main idea of this speech? Check all that apply.

Lower taxes increase consumer spending. Increased consumer spending strengthens the economy. Higher taxes will have a severe impact on citizens.

Milton Friedman helped to establish the economic theory of monetarism. Which statement best describes the idea of monetarism?

Monetary policy is the best way to influence economic growth.

Federal Government Spending (2010) Based on the graph, what are the two highest spending priorities for the federal government?

Social Security and Social Programs

Which statements accurately describe debts and deficits? Select all that apply.

The deficit is the amount a government spends above what it brings in. - The government's debt represents how much it owes from borrowing to pay for expenditures. - Deficits cause debt to increase. - Debt requires a government to pay back more than it has borrowed.

Categories of Federal Spending (2011) How does this graph show the importance of government spending to millions of Americans?

The largest portion is in the form of direct payments to workers and citizens.

regulation

a law that states how a procedure is to be carried out

After we had conducted thousands of experiments on a certain project without solving the problem, one of my associates . . . expressed discouragement and disgust over our having failed to find out anything. I cheerily assured him that we had learned something. For we had learned for a certainty that the thing couldn't be done that way, and that we would have to try some other way. Which characteristic of a successful entrepreneur does Edison exhibit in this quote?

an ability to learn from mistakes and adapt to new knowledge

labor union

an organization that represents working people

Determine whether these examples show government spending that is focused more on improving the economy or on meeting social needs. Use the drop-down menus to complete the statements. When governments spend to improve education or health care, they are focusing more on economic needs✔ social needs. When governments spend to improve the unemployment rate or increase GDP, they are focusing more on ✔ economic needssocial needs.

before

The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. However, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP. According to the scenario, what is one economic challenge that Country D faces? unemployment✔ inflation Based on what you have read, who is affected by the situation occurring within Country D? the government onlyindividuals onlybusinesses only✔ all are affected

before

The president of Country XYZ is worried about the increasing unemployment rate. She decides a new policy is needed to solve the problem. She has identified the ✔ issuepolicy, so her next step is to ✔ develop a plancreate new public policy. To help create a plan of action, ✔ citizensforeign governments, interest groups, and elected officials become involved.

before

When the government creates new laws about employee safety, the government creates monetary policy✔ regulatory policy. The amount of money that citizens pay in taxes, along with the amount of money that the government can spend, are part of ✔ fiscal policytrade policy. If the government decides to limit the number of goods that can be traded with another nation, the government creates monetary policy✔ trade policy. To control economic challenges, such as inflation, governments use ✔ monetary policyregulatory policy.

before

effects of contractionary spending

can cause consumers to spend less - lowers government debt - can improve inflation rates

Choose the best word or phrase from each drop-down menu. The Federal Reserve is the state bank✔ central bankdistrict bank within the United States. The Federal Reserve's role is to promote economic growth and ✔ stabilityinflationrecessions by enacting monetary policy. Private banksThe Constitution✔ The Federal Reserve Act of 1913 established the Federal Reserve system to avoid consumer panics.

central, stability, 1913

Which factor most directly influences how much money consumers are willing to borrow?

changing interest rates

Scenario: Over the last several months, there has been a rapid increase in the number of loans that banks have provided for mortgages and small businesses. This change has raised concerns for the Fed. Today, the Fed has announced an increase in the interest rates that it is charging banks. In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.

decrease the amount of money that banks have to lend reduce the amount of available credit discourage consumer borrowing by increasing interest rates on loans

collective bargaining

discussions between unions and employers

Total Annual Benefits and Costs of Major Federal Rules by Agency (2002-2012) In 2012, the Office of Management and Budget reported calculations of cost and benefits of regulations by major government agencies. According to the chart, which regulatory agency provides the greatest monetary benefit to the public? USDAHHS✔ EPA According to the chart, which regulatory agency had the fewest regulations studied? ✔ USDAHHSEPA

epa, usda

Choose the best word from each drop-down menu. Increasing the amount of credit that is available within an economy is done through ✔ expansionarycontractionarymonetary policy. The potential to cause inflation is accompanied by ✔ expansionaryX contractionarymonetary policy. A(n) X expansionary ✔ contractionarymonetary policy can cause interest rates to increase.

expansionary, expansionary, cobntractionary

Use the drop-down menus to complete each sentence. Keynes was an avid believer in consumerproducer✔ government intervention to help solve economic issues. Keynes believed that decreasing✔ increasing aggregate demand could help solve economic problems during a recession. Keynes recommended that the government increaseX lower✔ stop collecting taxes during economic contraction. During the Great Depression, Keynes promoted contractionary✔ expansionary actions to encourage economic recovery.

gvnm, increasing, stop collecting, expansionary

Which occupation is likely to experience growth in the next ten years?

home health-care aide

Troy is the CEO of a manufacturing company, and he is planning to open a new factory in his community.Because the new factory will require heavier traffic from delivery trucks and employees' cars, Troy is partnering with the city to expand and rebuild roadways in the neighborhood.As part of opening the factory, he also plans to create a new hiring program. Because he wants his workers to gain skills, he will also offer them the opportunity to attend college courses to receive business training. Which of these outcomes are possible negative externalities? Check all that apply.

increased traffic in the neighborhood surrounding the factory pollution from trucks making deliveries to the factory

Identify the goals of the central bank when creating monetary policy. Check all that apply.

influencing the business cycle encouraging economic growth avoiding periods of time where little credit is available

Read this sample food label. Which regulatory goals are met by the label? Check all that apply.

informing consumers about products helping consumers make educated choices ensuring that producers are responsible for product contents

Which of these are duties of the SEC? Check all that apply.

overseeing the actions of brokers and financial advisers ensuring the security and fairness of mutual funds and exchanges bringing suits against businesses that are not following securities laws

Scenario: The economy of Country Y has been in an economic downturn for the last several months. Recently, businesses have invested in new technologies in order to produce the goods that consumers are demanding within the nation's own borders. The government has removed regulations to allow producers and consumers to have more financial freedom. As a result, consumer spending has increased and the economy has begun to improve. Use the drop-down menus to complete the sentences. According to the information presented about Country Y, the classical economic concept of ✔ the invisible handconsumer efficiencygovernment regulation can be seen. The economic events of Country Y demonstrate the idea of laissez faire because the government did✔ did not intervene in economic events.

invisible hand, did not

effects of expansionary spending

lowers the unemployment rate - can create business growth - can trigger inflation

✔ Minimum wageUnion membershipChild laborlaws require businesses to pay workers at least a certain amount. The federal agency responsible for overseeing workplace safety regulations is the Department of X SafetyBusiness✔ Labor.

minimum wage, labor

Workers Compensation

pay required by law when a worker is injured on the job

Constitution of the United StatesArticle I, Section 8 Phrase A) The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises Phrase B) to pay the Debts and provide for the common Defence and general Welfare of the United States Phrase C) but all Duties, Imposts and Excises shall be uniform throughout the United States Which phrase defines the reasons why the federal government collects taxes? phrase A✔ phrase B phrase C Which phrase grants the federal government the power to collect taxes?

phrase b, phrase a

Which of these are goals of financial regulation? Check all that apply.

preventing monopolies ensuring that businesses accurately report their earnings keeping prices fair

Use the drop-down menus to complete each sentence. Hayek is best known for his contribution to the understanding of X unemployment✔ price changesstagflation . Hayek disagreed with Keynes about expansionary policy because it could cause ✔ inflationX unemploymentdecreased growth and positively✔ negatively influence consumer decisions. Unlike Keynes, Hayek believed that consumer actions could✔ could not be accurately displayed on a supply and demand curve.

price, inflation, negatively, could not

Citizen A pays 20% on $50,000. Citizen B pays 15% on $36,000.

progressive taxation

Homeowners pay ✔ property taxes income taxes corporate taxeson the land they own. Workers pay corporate taxes✔ income taxes property taxeson the money they earn in the workplace. Businesses are required to pay ✔ corporate taxes income taxesproperty taxeson their earnings.

property, income, corporate

Citizen A pays 10% on $50,000. Citizen B pays 10% on $36,000.

proportional taxation

Citizen A pays 15% on $50,000. Citizen B pays 20% on $36,000.

regressive taxation

Choose the best word or phrase from each drop-down menu. The Fed uses open market operations by buying and selling interest rates✔ securities. The rate at which banks lend money and charge one another for storing money in the Fed is known as the X Federal Reserve Interest RateLoan Interest Rate✔ Federal Funds Rate. When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available credit will likely ✔ increasedecreasestay the same.

securities, federal funds, increawse

Taxes placed on imported goods by the federal government are excise taxessales taxes✔ tariffs. Taxes collected on purchased goods, such as clothing, by state and local governments are excise taxes✔ sales taxes tariffs. Taxes placed on specific goods, such as gasoline, by federal and state governments are ✔ excise taxescorporate taxes tariffs.

tariffs, sales, excise

minimum wage

the lowest hourly pay that employees can receive

What are the main purposes of regulatory policies? Check all that apply.

to protect constitutional rights, safety, and fairness to ensure that property rights are protected to create regulation in a mixed-market economy only when needed