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Flashcards in Test 3 Deck (57)
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Learning effect

education increases productivity and results in higher wages

1

screening effect

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

2

contingent employment

temporary or part-time job

3

productivity

value of output

4

labor union

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

5

blue-collar worker

works in an industrial job and receives wages

6

white-collar worker

in a professional or clerical job, usually earning a salary

7

mediation

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

8

Arbitration

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

9

barter

Exchange of one set of goods or services for another

10

money

anything that serves as a medium of exchange

11

store of value

keeps its value if stored rather than use

12

currency

coins and paper bills used as money

13

commodity

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

14

representative money

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

15

Fiat money

Government makes it legal tender to pay debts

16

Bank

An institution for receiving, keeping, and lending money

17

Gold standard

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

18

money supply

all money available in the United States economy

19

mutual fund

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

20

default

failure to pay back a loan

21

Mortgage

type of loan that is used to buy real estate

22

Credit card

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

23

interest

Price paid for use of borrowed money

24

principal

amount of money borrowed

25

debit card

check card withdraws money from checking account

26

investment

The use of assets to earn income or profit

27

diversification

spreading out investments to reduce risk

28

portfolio

A collection of financial assets

29

prospectus

an investment report potential investors