87 terms

econ III

truet/f if both labor and management agreee to abide by the ruling of a third party to settle their dispute, the process is called arbitration.
If an agreement cannot be reached ning, workers use the boycott-refusing to work until their demands are met
During arbitration, a third party makes a nonbinding compromise to resolve a dispute between labor and management
Skilled laborers are workers who are able to operate complex equipment and who can work with little supervision.
The traditional theory of wage determination states that wages are set according to the laws of supply and demand.
Supply and demand are used to predict the incidence of a tax.
The 3 criteria for effective taxes are equity, complexity, and efficiency.
The 2 principles of taxation are the benfit principle and the ability-to-pay principle.
he marginal tax rate is the rate that applies to the next dollar of taxable income.
A regressive tax imposes a lower perrate of taxation on low incomes than on high incomes.
Distribution of income explains the way in which income is allocated to individuals, familes, or other designated groups.
One of the major concerns about the national debt is that more than 50% of it is owed to investors outside of the US
consequences of the national debt include the redistributition of income and diminishing incentives to work, save, and invest.
Most Americans favored unions in the 1930's but shifted to favoring management after WWII
The closed shop was made illegal by the Taft-Hartley Act of 1947.
The agency shop requires that an employee join the union shortly after being hired.
Government spending can directly affect both the allocation of resources and the distribution of income.
The fastest growing category of fderal exenditures since 1980 has been defense.
States spend the largest portion of their revenues on intergovenmental expenditures and public welfare.
Fiat money has no inherent worthl.
The Fair Labor Standards Act..
D. established a federal minimum wage
The national Labor RElations Act...
B. established the right of unions to collective bargaining
When labor and management ask a third party to collect information about a dispute and present non-binding recommendations, they are using...
A. Fact-finding
Workers with knowledge-based education and managerial skill are..
D. Professional labor
The incidence of a tax can more effectively be shifted from the supplier to the consumer if...
A. the demand curve is inelastic
The flat tax
D. Simplifies the tax process
The 'incidence of a tax'..
B. refers to those who bear the final burden of taxation
Ann earns $10,000 annually and pays a tax of $1,000. Jerome earns $60,000 during the same period and pays taxes of $20,000. The tax they both paid was a ...
B. progressive tax
FICA includes taxes to pay for...
A. Social Security and medicare
The flat tax..
C. Departs from the ability-to-pay principle of taxation.
In order for money to have value, it must have all of the following characteristics EXCEPT...
B. plentiful availability
The first fedral legislation to exempt unions from the antitrust laws was the
C. Sherman Antitrust Act
The invisible barrier that hinders women and minorities from advancement up the corporate ladder
B. is known as the glass ceiling
An example of mandatory spending is financing for
A. interest payments on the federal debt
The largest category of spending for most local governments is
A. elementary and secondary education
The sequence for the approval of the federal budget is...
B. president to congress back to president
The largest category of state spending is
C. intergovenmental expenditures
Money loses its value when it...
D. becomes too plentiful
The FDIC was established to
A. protect the savings of the American people
A special tax on gasoline is probably a ____ tax.
A _____ duty is a charge levied ongoods brought in from other countries
The person who assigns value to property for tax purposes is the_________.
Tax Assessor
Businesses may receive an ____ for investing in new plants and equipment.
investment tax credit
The _____ requires an employer to automatically deductin income taxes from an employee's wages and send it directly to the government
payroll withholding
_____ is the tax paid on the profit people earn from the sale of an asset they've held for a year or more.
capital gains tax
When a person dies, the govenment may levy an _____ on the transfer of the deceased's property to someone else
estate tax
Many people believe a ____ tax is most fair because everyone will pay the same percentage of taxes
A local government may impose a ____ on the real estate and automobiles belonging to its citizens
property tax
Current dollars
dollars that are not adjusted for inflation
refusal to work until demands are met
court order not to act
use of a neutral third person or persons to hellp settle a dispute
equilibrium wage rate
leaves neither a surplus nor a shortage in the labor market
labor and managment agree to accept a 3rd party's decision as binding
mass refusal to buy products from targeted companies
right-to-work law
state law making it illegal to force workers to join a union
agency shop
employment situation where workers do not have to join a union but must pay union dues
minimum wage
lowest wage that can be paid by law to most workers
sin tax
relatively high tax on socially undersirable products, such as tobacco
property tax
tax on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts
individual income tax
tax on people's earnings
upward revision of the tax brackets to compensate for the effects of inflation
progressive tax
tax that imposes a higher percentage rate of taxation on people with higher incomes than on people with lower incomes
capital gains
profits from the sale of an asset held for 12 months
excise tax
tax on the manufacture and sale of selected items
proportional tax
tax in which everyone pays the same percentage regardless of income
corporate income tax
tax paid by corporations on their income
tax assessor
person who assigns value to property for tax purposes
regressive tax
tax that imposes a higher percentage of taxation on lower incomes than on higher incomes
flat tax
proportional tax on individual income after an income threshold has been reached
estate tax
tax levied on property left to an heir when a person dies
fiscal year
12 month financial-planning period that may or may not correspond with the calendar year
balanced budget
budget in which spending equals revenues
transfer payment
payment for which the govenment receives neither goods nor services
mandatory spending
spending authorized by law that continues wihtout the need for annual approvals by Congress
social programs that provide services or income to all individuals who meet eligility requirements
deficit spending
when the govenment must borrow money to pay for government programs
crowding-out effect
higher interst rates caused by heavy government borrowing
appropriations bill
act of Congress tha tauthorizes fedral agencies to spend money
discretionary spending
fedral programs that must receive annual authorization by Congress
line-item veto
presidential power to cancel specific budget items without rejecting the entire budget
barter economy
economy based on trade rather than money
medium of exchange
something accepted as payment for goods and services
Federal Reserve Note
paper currency issued by the Federal Reserve System
monetary standard
mechanism by which money is kept portable, durable, divisible, and limited in suppply
legal tender
fiat money that must be accepted in payment for debt
gold standard
paper currency backed by gold