Econ- Chapter 8-9 (Prentice Hall Economics Principles in Action) – Flashcards
Unlock all answers in this set
Unlock answersquestion
Labor force
answer
All non military people who are employed or unemployed
question
Learning effect
answer
Theory that education increases productivity and results in higher wages
question
Screening effect
answer
A theory that suggests that the completion of college indicates to employers that a job applicant is intelligent and hard working
question
Contingent employment
answer
Temporary or part time jobs that people hire directly by firms for a specific time period or to complete a certain task
question
Productivity
answer
The value of output
question
Equilibrium wage
answer
Wage rate that produces neither an excess supply of workers nor excess demand for workers in the labor market
question
Unskilled labor
answer
Requires no specialized skills, education, or training
question
Semi-skilled labor
answer
Requires minimal specialized skills or education
question
Skilled labor
answer
Requires specialized abilities and training to do tasks
question
Professional labor
answer
Demands advanced skills and education
question
Glass ceiling
answer
Invisible barrier that sometimes prevents women and minorities from advancing to the top ranks of business
question
Labor union
answer
An organization of workers that tries to improve working conditions, wages, and benefits for members.
question
Featherbedding
answer
Negotiating labor contracts that keep unnecessary workers on the company payroll
question
Strike
answer
An organized work stoppage intended to force an employer to address Union demands.
question
Right-to-work laws
answer
Bans mandatory Union membership
question
Blue-collar workers
answer
Those who work industrial jobs
question
White-collar workers
answer
Those who work professional or clerical jobs
question
Collective bargaining
answer
Union and company representatives meet periodically to negotiate a new labor contract
question
Mediation
answer
Settlement technique in which a neutral mediator meets with each side to find a solution that both sides will accept
question
Arbitration
answer
A settlement technique in which a neutral third party reviews the case and imposes a decision that is legally binding for both sides
question
Business organization
answer
An establishment formed to carry on commercial enterprise
question
Sole proprietorship
answer
A business owned and managed by a single individual
question
Business license
answer
An authorization from the local government
question
Zoning laws
answer
Designated special areas for residential use and business
question
Liability
answer
Legally bound obligation to pay debts
question
Fringe benefit
answer
Payments to employees other than wages and salaries
question
Partnership
answer
Business organization owned by two or more persons who agree on a specific division of responsibilities and profits
question
General partnership
answer
Partners shares equal responsibility and liability
question
Limited partnership
answer
One partner has unlimited personal liability
question
Limited liability partnership (LLP)
answer
All partners are limited partners. Same as general except that all partners are limited from personal liability in certain situations.
question
Uniform Partnership Act (UPA)
answer
Requires common ownership interests, profit and loss sharing, and shared management responsibilities.
question
Articles of partnership
answer
Partnership agreement
question
Assets
answer
Money and other valuables
question
Corporation
answer
Legal entity, or being, owned by individual stockholders
question
Stock
answer
A certificate of ownership in a corporation
question
Closely held corporations
answer
Corporations that issue stock to only a few people
question
Publicly held corporations
answer
Many shareholders can buy or sell stock on the open market.
question
Bond
answer
Formal contract to repay borrowed money with interest at fixed intervals.
question
Certificate of incorporation
answer
Corporate charter
question
Dividends
answer
Portion of corporate profits paid out to stock holders
question
Horizontal mergers
answer
Joining two or more firms competing in the same market with the same good or service
question
Vertical mergers
answer
Join two or more firms involved in different stages of producing the same good or service
question
Conglomerates
answer
More than three businesses that make unrelated products
question
Multinational corporations (MNCs)
answer
Worlds largest corporations produce and sell their goods and services throughout the world.
question
Business franchise
answer
Semi independent business that pays fees to a parent company
question
Royalties
answer
Charges to franchise owners
question
Cooperative
answer
Business organization owned and operated by a group of individuals for their shared benefit.
question
Consumer cooperatives
answer
Retail outlets owned and operated by consumers
question
Services cooperatives
answer
Produce a service rather than a good
question
Producer cooperatives
answer
Agricultural marketing cooperatives that help members sell their products
question
Nonprofit organizations
answer
Institutions that function much like business organizations but don't operate for the purpose of making profit
question
Professional organizations
answer
Work to improve the image, working conditions, and skill levels of people in particular occupations
question
Business associations
answer
Promote the collective business interests of a city, state, or other geographical area, or if a group of similar businesses.
