Law of Demand
the rule that, holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demand of the product will increase
Law of Supply
the rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied
amount of money left over after all the costs of production have been paid
the money a business recieves from customers who buy its goods and services
An employer tactic in a labour dispute in which the employer refuses to allow workers to enter a plant or building to work, which means that the workers do not get paid.
to refuse to work until certain demands, such as higher wages or better working conditions, are met
A regulation which requires a bank to keep a certain percentage of each dollar deposited in the bank in its reserve account at the Fed or in its vault (as vault cash)
A quantity much larger than is needed, a situation in which quantity supplied is greater than quantity demanded
Costs of Production
The dollar amount producers pay for the resources used to produce goods and services.
the process in which a union representing a group of workers negotiates with management for a contract
Negative term for a worker called in by an employer to replace striking laborers
To exchange goods or services without the use of money
A relationship whereby two variables move in opposite directions. When one variable rises, the other falls.
A situation in which the quantity demanded is greater than the quantity supplied at a given price
an organization of workers formed to improve their wages, benefits, and working conditions
a common practice of workers on strike-- usually involves groups of workers stationed outside their place of work, carrying protest signs and making lots of attention getting noise to try and gain public support
Federal Reserve System
United States banking system that regulates money supply and interest rates, consisting of 12 Federal Reserve Districts in which a Federal Reserve Bank regulates the activities of affiliated banks, the central bank of the United States
a relationship between two factors in which the factors move in the same direction; for example, as one factor rises, the other rises, too.
the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
when a third party is called in to make a binding decision between two groups, a process in which both sides agree to place their differences before a third party whose decision will be accepted as final
the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute