Economics – Chapter 9 Labor – Flashcards
Flashcard maker : Brad Bledsoe
Who is considered part of the labor force?
People who are 16 years old or older and employed or ACTIVELY seeking employment, does not include military
Name four reasons that Samuel Gompers founded labor unions.
– low wages
– unsafe working conditions (including child labor)
– long hours
– lack of job security (fired without cause)
– unsafe working conditions (including child labor)
– long hours
– lack of job security (fired without cause)
Define strike.
When a union decides to stop work in order to press demands.
Define boycott.
Where people refuse to buy certain goods in protest.
Define demonstration.
Workers protest to get their concerns known to the public and their employers.
Define lockout.
Company tool to fight union demands. Employer locks workers out of the business so the worker cannot work thus cannot earn wages.
Define collective bargaining.
– Negotiations between the union and management concerning working conditions, pay, etc.
Name the three main goals of labor unions when collectively bargaining.
– wages & benefits
– working conditions
– job security
– working conditions
– job security
Name four reasons for the decline in labor unions.
– law to protect workers’ safety and rights
– decline in manufacturing jobs
– negative attitude toward unions due to some unions abuse of power and links to organized crime
– jobs moving overseas
– decline in manufacturing jobs
– negative attitude toward unions due to some unions abuse of power and links to organized crime
– jobs moving overseas
For which group of employees has union membership increased?
Government employees
In terms of type of work, how has the economy changed over the last 200 years?
Agricultural (farming) to manufacturing (factories) to service jobs
Define equilibrium wage
the wage rate that leaves neither a surplus nor a shortage in the labor market
What are some reasons people are against raising the minimum wage?
Workers will lose their jobs because employers will feel wages are too high.
Machines will replace workers.
Workers will only get paid minimum wage.
Machines will replace workers.
Workers will only get paid minimum wage.
What percent of workers currently belong to a union?
14%
Define unskilled worker.
No specialized skills, education or training. Earn hourly wage. Examples: dishwasher, factory workers, messengers.
Define semi-skilled worker.
Requires minimal specialized skills and education. Earn hourly wage. Examples: word processor, lifeguard, some construction work.
Define skilled worker.
Requires specialized abilities and training. Need little supervision and usually earn hourly wage. Examples: mechanic, plumber, fire fighter, electrician.
Define professional worker.
Requires advanced skills and education. White collar workers who receive salaries. Highest paid workers. Examples: doctor, teacher, manager.
Define blue collar worker.
Worker who performs manual labor, often in a manufacturing job, and who earns an hourly wage.
Define white collar worker.
Someone in a professional or clerical job who usually earns a salary.
What government organization collects data on unemployment and the labor market?
Bureau of Labor Statistics (BLS) with the US Department of Labor
In the LABOR market, who is considered the supplier?
Households – supply workers/labor
In the LABOR market, who is considered the demander?
Business organizations – they demand workers/labor
Benefits of belonging to a union?
– tend to make higher wages
– job security
– access to benefits such as insurance
– job security
– access to benefits such as insurance
What are reasons that women traditionally have been paid less than men?
– closed out of higher paying jobs
– less training, experience and education
– encouraged to seek employment in lower paying jobs
– less training, experience and education
– encouraged to seek employment in lower paying jobs
Define human capital. What type of workers have the most human capital?
The skills and knowledge gained by a worker through education and experience. Professional workers have the most human capital.
Define the Screening Effect Theory.
The theory that the completion of college indicates to employers that the job applicant is intelligent and hard working. Is not an accurate theory.
What is happening to the cost of benefits compared to wages?
Benefits such as health insurance are increasing faster than wages.
What year did small unions begin to form?
by the 1800’s
When were the Knights of Labor founded?
1869
When did Samuel Gompers found the American Federation of Labor (AFL)?
1886
When did union membership peak?
1940s
When did the AFL and CIO merge?
1955
