Test 3

Question 0

screening effect

Answer 0

competition of college shows employers the applicant is intelligent and hard-working

Question 1

Learning effect

Answer 1

education increases productivity and results in higher wages

Question 2

contingent employment

Answer 2

temporary or part-time job

Question 3

productivity

Answer 3

value of output

Question 4

labor union

Answer 4

Organization for workers that try to improve working conditions, wages, and benefits

Question 5

blue-collar worker

Answer 5

works in an industrial job and receives wages

Question 6

white-collar worker

Answer 6

in a professional or clerical job, usually earning a salary

Question 7

mediation

Answer 7

neutral person meets with each side to try to find a solution that both sides will accept

Question 8

Arbitration

Answer 8

a third-party reviews the case and imposes a decision that is legally binding

Question 9

barter

Answer 9

Exchange of one set of goods or services for another

Question 10

money

Answer 10

anything that serves as a medium of exchange

Question 11

store of value

Answer 11

keeps its value if stored rather than use

Question 12

currency

Answer 12

coins and paper bills used as money

Question 13

commodity

Answer 13

objects that have value in themselves and are also used as money

Question 14

representative money

Answer 14

objects that have value because the holder can exchange them for something else of value

Question 15

Fiat money

Answer 15

Government makes it legal tender to pay debts

Question 16

Bank

Answer 16

An institution for receiving, keeping, and lending money

Question 17

Gold standard

Answer 17

System in which paper money and coins are equal to a certain amount of gold

Question 18

money supply

Answer 18

all money available in the United States economy

Question 19

mutual fund

Answer 19

pools money to purchase short-term, low risk, investments

Question 20

default

Answer 20

failure to pay back a loan

Question 21

Mortgage

Answer 21

type of loan that is used to buy real estate

Question 22

Credit card

Answer 22

entitles holder to buy goods and services based on promise to pay

Question 23

interest

Answer 23

Price paid for use of borrowed money

Question 24

principal

Answer 24

amount of money borrowed

Question 25

debit card

Answer 25

check card withdraws money from checking account

Question 26

investment

Answer 26

The use of assets to earn income or profit

Question 27

diversification

Answer 27

spreading out investments to reduce risk

Question 28

portfolio

Answer 28

A collection of financial assets

Question 29

prospectus

Answer 29

an investment report potential investors

Question 30

return

Answer 30

money investor receives above the amount initially invested

Question 31

Bond

Answer 31

receive interest for loaning money to a business or the government

Question 32

maturity

Answer 32

when payment to a bondholder is due

Question 33

yield

Answer 33

yearly rate of interest on the bond

Question 34

savings bond

Answer 34

Low denomination bond issued by the US government

Question 35

securities and exchange commission (SEC)

Answer 35

Agency of government that regulates financial market

Question 36

junk bond

Answer 36

Low rated, potentially higher-paying bond

Question 37

capital-market

Answer 37

market where money is lent for longer than a year

Question 38

money market

Answer 38

Marketware money is lent for less than a year

Question 39

share

Answer 39

portion of a stock

Question 40

dividends

Answer 40

profits paid to stockholders, usually every quarter

Question 41

Capital gain

Answer 41

difference between higher selling price and lower purchase price

Question 42

Capital loss

Answer 42

difference between lower selling price and higher purchase price

Question 43

stockbroker

Answer 43

person who links buyers and sellers of stock

Question 44

brokerage firm

Answer 44

Business that specializes in trading stocks

Question 45

stock exchange

Answer 45

market for buying and selling stock

Question 46

frictional unemployment

Answer 46

while trying to find a job

Question 47

seasonal unemployment

Answer 47

cause of harvest schedules or industries that shut down for the season

Question 48

cyclical unemployment

Answer 48

during economic downturns

Question 49

structural unemployment

Answer 49

workers skills don't match the jobs that are available

Question 50

underemployed

Answer 50

being overqualified or working part time when you want to work full-time

Question 51

inflation

Answer 51

General increase in prices

Question 52

inflation rate

Answer 52

percentage rate of change in price level overtime

Question 53

wage price spiral

Answer 53

rising wages cause higher prices and higher prices cause higher wages

Question 54

poverty threshold

Answer 54

income is insufficient to support a family or household

Question 55

food stamps

Answer 55

Government issued coupons that recipients exchange for food

Question 56

Enterprise zone

Answer 56

where companies can locate free of certain local, state, and federal taxes