Econ Chapters 8-10

Front 1

macroeconomics

Back 1

branch of econ. tht deals w/ economy as a whole, includin employment, gross domestic product, inflation, econ. growth and distribution of income

Front 2

Giveback

Back 2

a wage,Fringe benefit or work rule given up when a labor contract is negotiated

Front 3

Two-Tier Wage system

Back 3

Keeps high wages for current workers but has a much lower wage for newly hired workers

Front 4

Glass Ceiling

Back 4

invisible barrier that obstructs advancement of women and minorities up the corporate ladder

Front 5

Comparable Worth

Back 5

Principle stating that people should receive equal pay for work that's different from but as demandas as other types of work

Front 6

Set Aside Contract

Back 6

Guaranteed contract reserved exclusively for a targeted group

Front 7

Part time Workers

Back 7

Workers that work less than 35 hours a week

Front 8

Minimum Wage

Back 8

Lowest wage that can be paid by law to most workers

Front 9

Current Dollars

Back 9

Dollars that aren't adjusted for inflation

Front 10

Real/Constant Dollars

Back 10

Dollars that are adjusted in a way that removes distortion of inflation

Front 11

Base Year

Back 11

A year that serves as a comparison for all other years

Front 12

Sin Tax

Back 12

Relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product(liquor, tobacco)

Front 13

Incidence of a Tax

Back 13

Final burden of tax

Front 14

Tax Loopholes

Back 14

Exceptions or oversights in a tax law that allow some people and business to avoid paying taxes

Front 15

Individual Income Tax

Back 15

Tax on peoples earnings

Front 16

Sales Tax

Back 16

General tax levied on most consumer purchases

Front 17

Benefit principle of taxation

Back 17

people who benefit from govt goods and services should pay in proportion to the amount of benefits they receive

Front 18

proportional tax

Back 18

imposes same percentage rate of taxation on everyone regardless of income

Front 19

Average Tax rate

Back 19

total taxes divided by total income

Front 20

Progressive Tax

Back 20

imposes higher percentage rate of taxation on people w/high incomes than on those w/low incomes

Front 21

Marginal Tax Rate

Back 21

tax rate that applies to nxt $ of taxable income

Front 22

Regressive Tax

Back 22

imposes higher percentage rate of taxation on low incomes than on high incomes

Front 23

Payroll withholding system

Back 23

requires an employer to automatically deduct income taxes from employee's paycheck and send deducted tax directly to govt

Front 24

IRS(Internal Revenue Service)

Back 24

Branch of US Treasury in charge of collecting taxes

Front 25

Tax Return

Back 25

annual report to IRS(total income,deduction, etc)

Front 26

Indexing

Back 26

upward revisionof tax brackets to keep workers from paying higher taxes just because of inflation

Front 27

FICA

Back 27

Federal Insurance Contributions Act tax levied on both employers and employees for Social Security and Medicare

Front 28

Medicare

Back 28

Federal health care program available to all senior citizens regardless of income

Front 29

Payroll Tax

Back 29

taxes that are deducted from a paycheck

Front 30

Corporate Income Tax

Back 30

Tax a corporation pays on its profits

Front 31

Excise Tax

Back 31

tax on manufacturer or sale of selected items such as gas and liquor

Front 32

Luxury Goods

Back 32

economic product for which demand rises faster than income when income growns

Front 33

Estate Tax

Back 33

tax govt levies on transfer of property when a person dies

Front 34

Gift Tax

Back 34

tax on donations of dollars or wealth and is paid by the person who makes the gift

Front 35

Customs Duty

Back 35

charge levied on goods brought in from other countries

Front 36

User Fees

Back 36

charges levied for use of a good or service

Front 37

Intergovernmental revenue

Back 37

funds collected by one level of govt that are distributed to another level of govt for expenditures

Front 38

Property Tax

Back 38

tax on tangible possessions such as real estate, buildings, furniture, cars, stocks bonds, bank accounts

Front 39

Tax Assessor

Back 39

person who assigns value to property for tax purposes

Front 40

Payroll Withhold statement

Back 40

summary statement attached to a paycheck that summarizes income tax withholdings and other deductions

Front 41

Accelerated depreciation

Back 41

larger than normal depreciation charges

Front 42

Investment Tax Credit

Back 42

reduction in business taxes tied to investment in new plants and equipment

Front 43

civilian labor force

Back 43

men and women 16 yrs. old and avr who r either wrking or actively looking for a job

Front 44

craft/trade union

Back 44

association of skilled wrkers who perform same knd of work

Front 45

industrial union

Back 45

association of all wrkrs in a given industry regardless of job each person performs

Front 46

strike

Back 46

refuse to wrk until certain demands are met

Front 47

picket

Back 47

parade in frnt of employer's business carrying signs about a dispute

Front 48

boycott

Back 48

mass refusal 2 buy products from targeted employers or companies

Front 49

lockout

Back 49

refusal to let employees wrk until management demands are met

Front 50

company union

Back 50

union organized, supported and run by employers

Front 51

great depression

Back 51

grtest period of economic decline and stagnation in US history

Front 52

right to work law

Back 52

state law mking it illegal 2 force wrkrs 2 join a union as a condition of employment even though a union may already exist in company

Front 53

independent union

Back 53

union that doesn't belong to AFL-CIO

Front 54

closed shop

Back 54

sit. in which employer agrees to hire only union members

Front 55

union shop

Back 55

wrkr dsnt have to blng 2 union 2 b hired but must join soon aftr and remain a member 4 as lng as he/she keeps job

Front 56

modified union shop

Back 56

wrkrs dnt hv 2 blng 2 a union 2 b hired & cnt b made 2 join 1 to keep jobs

Front 57

agency shop

Back 57

agreement tht dsnt require a wrkr 2 join a union as a condition 2 get or keep a job, but requires wrkr 2 pay union dues 2 hlp pay collective bargaining costs

Front 58

grievance procedure

Back 58

contract provision for resolving issues tht may come up later

Front 59

mediation

Back 59

bringing in a neutral 3rd person(s) 2 hlp settle a dispute

Front 60

arbitration

Back 60

both sides agree 2 place their difference b4 a 3rd party whose decision will b accepted as final & binding

Front 61

fact-finding

Back 61

agreement between union & management 2 hv a 3rd neutral party collect facts about a dispute and prsnt nonbinding recommendations

Front 62

injunction

Back 62

court order not to act

Front 63

seizure

Back 63

temporary take over of operations

Front 64

unskilled labor

Back 64

wrkrs tht wrk w their hnds b/c they lack training and skills required for othr tasks

Front 65

semiskilled labor

Back 65

wrkrs w/ enough mechanical abilities and skills to operate machines tht require a min. amount of training

Front 66

skilled labor

Back 66

wrkrs able 2 operate complex equipement and can perform their tasks w/ little supervision

Front 67

professional labor

Back 67

ppl w highest level of knowledge based edu. and managerial skills

Front 68

noncompeting labor grades

Back 68

broad categories of labor tht dsnt directly compete w/ 1 another b/c of experiencing, training, edu. and othr human campital invetments

Front 69

wage rate

Back 69

stndrd amount of pay given for wrk performed

Front 70

equilibrium wage rate

Back 70

leaves neither surplus nor shortage in labor market

Front 71

theory of negotiated wages

Back 71

organized labor's bargaining strength is a factor tht hlps determine wages

Front 72

seniority

Back 72

length of time person has been on job

Front 73

signaling theory

Back 73

employers are usually willing 2 pay more 4 pplw/ certificates, diplomas, degrees, and othr indicators

Front 74

labor mobillity

Back 74

ability and willingness of wrkrs 2 relocate in markets where wages are higher

Front 75

sur charge

Back 75

additional tas above and beyond base rate

Front 76

alt. min. tax

Back 76

personal income rate tht applies whenever amount of taxes paid falls below some designated level

Front 77

capital gains

Back 77

profits frm sale of an asset hld for 12 months

Front 78

value added tax (VAT)

Back 78

tax placed on walue tht manufacturers add at each stage of production

Front 79

flat tax

Back 79

proportional tax on individual income after a specified threshold has been reached

Front 80

per capita

Back 80

per person

Front 81

public sector

Back 81

prt of economy made up of fed, state, and local govs.

Front 82

private sector

Back 82

prt of econ. made up of private individuals and privately owned businesses

Front 83

transfer payment

Back 83

gov. recieves neither goods nor services in return

Front 84

grant in aid

Back 84

transfer payment that 1 level of gov makes 2 another

Front 85

distribution of income

Back 85

way in which income is allocoated among families, individuals, or othr designated grps in economy

Front 86

fed. budget

Back 86

annual planning outlinning proposed revenues and expenditures for the coming year

Front 87

mandatory spnding

Back 87

spnding authorized by law tht continues without need for annual approvals of congress

Front 88

discretionary spnding

Back 88

programs tht must recieve annual authorization

Front 89

fiscal yr

Back 89

12 month financial planning period tht may or may not coincide w/ calendar yr.

Front 90

fed. budget surplus

Back 90

escess of revenues ovr expenditures

Front 91

fed. budget deficit

Back 91

shortfall if expenditures are larger than revenues

Front 92

appropriations bill

Back 92

act of congress tht allows fed. agencies to spend money for specific purposes

Front 93

medicaid

Back 93

join fed state medical insurance prgrm for low income ppl

Front 94

balanced budget amendment

Back 94

requires tht annual spnding not exceed revenues

Front 95

intergovernmental expenditures

Back 95

funds tht 1 level of gov transfers to anotherlevel for spending

Front 96

deficit spending

Back 96

spending in excess of revenues collected

Front 97

fed. debt

Back 97

total amount borrowed from investors to finance govs deficit spending

Front 98

balanced budget

Back 98

annual budget in which expenditures = revenue

Front 99

trust fund

Back 99

special account used to fund specific types of expenditures such as social security and medicare

Front 100

crowding out effect

Back 100

high than normal interest rate tht heavy gov. borrowing causes

Front 101

"pay-as-you-go" provision

Back 101

requirement tht new spnding proposals or tax cuts must be offset by reductions eslewhere

Front 102

line-item veto

Back 102

pwr 2 cancel specific budget items without rejecting entire budget

Front 103

spending cap

Back 103

legal limit on annual discretionary spending

Front 104

entitlement

Back 104

broad social program tht uses established elligibility requirements to provide health, nutrional or income supplments to individuals