Economics Vocabulary 1

Chapter 2 Economics – Economics – Vocabulary 

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Economic System – System – an organized way in which a society provides for the wants and needs of its people Traditional Economy Economy –  – Economic system in which the allocation all ocation of scarce resources and other economic activities are based on ritual, habit, or custom Command Economy – Economy – Economic system with a central authority that makes the major economic decisions Market Economy – Economy – Economic system in which supply, demand, and the price system help people make economic decisions and allocate resources Market – Market  – meeting place or mechanism that allows buyers and sellers to come together Capitalism – Capitalism – Economic system in which private citizens own and use the factors of  production in order to generate profits. Mixed Economy – Economy – Economic system that has some combination of traditional, command, and market economies. Socialism – Socialism – Political and economic system in which the government owns and controls some factors of production Communism – Communism  – Economic and Political system in which all factors of production are collectively owned and controlled by the state Minimum Wage – Wage – lowest legal wage that can be paid to most workers – workers – economic equality Social Security – Security – Federal program of disability and retirement benefits that covers most working people – people – economic security

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Inflation – Inflation – rise in the general level of prices

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Fixed Income – Income – Income that does not increase even though prices go up

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Free Enterprise – Enterprise – Capitalistic economy in which competition is allowed to flourish eith a minimum of government interference

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Voluntary Exchange – Exchange – the act of buyers and sellers freely and willingly engaging in market transactions – transactions – benefits both the buyer and the seller Private Property Rights – Rights  – Fundamental feature of capitalism that allows individuals to own and control their possessions as they wish Profit – Profit  – Extent to which persons or organizations are better off financially at the end of  a period than they were at the b eginning Profit Motive – Motive – Incentive that encourages people and organizations to improve their financial and material well-being Competition – Competition – the struggle among sellers to attract consumers Consumer Sovereignty – Sovereignty – Role of the consumer as ruler of the market when determining the types of goods and services produced. Mixed or Modified Free Enterprise Economy – Economy – Economy where people carry on their economic affairs freely but are subject to some government intervention and regulation

Kaitlynne Cunningham

November 7, 2011

Chapter 8 Economics – Economics – Vocabulary 

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Craft Union or Trade Union – Union – labor union whose members perform the same kind of  work Industrial Union – Union – Labor Union whose members perform different kinds of work in the same industry Strike – Strike – Union-organized work stoppage designed to make and employer mee t union demands Picket – Picket  – demonstrate or march before a place of business to protest a company’s actions

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Boycott – Boycott – Refusal to buy products from an employer or company

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Lockout – Lockout – Management refusal to let employees work until demands are met

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Company Unions – Unions – Union organized, supported, or run by the employer

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Great Depression – Depression – Worst period of economic decline in US history, lasting from 1929 to approximately 1939 Right to Work Law – Law – state law making it illegal to require a worker to join a union Independent Union – Union  – labor union not affiliated with the AFL-CIO or the Change to Win Coalition Closed Shop – Shop – Arrangement under which workers must join a union before they are hired Union Shop – Shop – Arrangement under which workers must join a union after being hired Modified Union Shop – Shop  – Arrangement under which workers have the option to join a union after being hired Agency Shop – Shop – Arrangement under which nonunion workers must pay union dues Civilian Labor Force – Force – Noninstitutionalized part of the population, aged 16 and over, either working or looking for a job Wage Rate – Rate – Prevailing Pay scale for work performed in an occupation

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Unskilled Labor – Labor – workers not trained to operate specialized machines and equipment Semiskilled Labor – Labor  – Workers who operate machines that require a minimum amount of  training Skilled Labor – Labor – Workers who are trained to operate complex equipment and require little supervision Professional Labor – Labor  – workers with a high level of training, education, and managerial skills Market Theory of Wage Determination – Determination – Explanation of wage rates relying on theory of  supply and demand Equilibrium Wage Rate – Rate  – Wage rate leaving neither a surplus or a shortage in the market Theory of Negotiated Wages – Wages  – Explanation of wage rates based on the bargaining strength of organized labor Seniority – Seniority – length of time a person has been on a job Signaling Theory – Theory – Theory that employers are willing to pay more for people with certificates, diplomas, and other indicators of superior ability Collective Bargaining – Bargaining – Process of negotiation between union and management representatives over pay, benefits, and job-related matters Grievance Procedure – Procedure – Provision in labor contract that outlines how future disputes and disagreements will be resolved Mediation – Mediation – Process of resolving a dispute by bringing in a neutral third party Arbitration or Binding Arbitration – Arbitration – Agreement by two parties to place a dispute before a third party for a binding settlement Fact-Finding – Fact-Finding – Agreement between union and management to have a neutral third party collect facts about a dispute and present nonbinding recommendations Injunction – Injunction – Court order issued to prevent a company or union from taking action during a labor dispute

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Seizure – Seizure – Temporary government takeover of a company to keep it running during a labor management dispute Giveback – Giveback – Wage, fringe benefit, or work rule given up when negotiating a contract Two-Tier Wage System – System – Wage scale paying newer workers a lower wage than others already on the job Glass Ceiling – Ceiling – Seemingly invisible barrier hindering advancement of women and minorities in a male-dominated organization Set-Aside Contract – Contract – Guaranteed contract reserved for a targeted group, usually a minority

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Minimum Wage – Wage – lowest legal wage that can be paid to most workers

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Current Dollars – Dollars – Dollar amounts or prices that are not adjusted for inflation

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Real or Constant Dollars – Dollars  – Dollar amounts or prices that have been adjusted for inflation Base Year – Year – Year serving as point of comparison comparison for other years in a price price index or statistical measure