Review for unions and economic systems

schoolstudycanada's version from 2017-06-25 22:46

Unions- terms

Question Answer
Collective bargainingmeeting between labour and management to discuss demands both have of the other.
Lockoutemployees not permitted to access the job site
collective agreementregulates terms and conditions of employees
Job securityhow much someone can count on having their job in the future
colacost of living allowance - term used for future wages keeping up with inflation
fringe benefitsmedical, dental, sick leave, vacations, etc...
mediation3rd party tries to help both sides to start talking again and come to an agreement
strikea legal (or illegal) organized stop of work
essential servicescan't go on strike as it would endanger the public
arbitration3rd settles the dispute by ruling in favour of one side or the other; legally binding solution
grievancecomplaint lodged by Union to Employer regarding unfair job issue
Skilled labourrequires training from and educational institution of from a previous job
Unskilled labourlittle training needed
work to ruleemployees do ONLY the outlined in the contract
scabsreplacement workers brought in by management
conciliationneutral third party looks for common ground and a possible solution to create an agreement

Economic systems

Question Answer
3 major questions all countries must ask-what to produce
-how to produce them
-for whom should things be produced
3 major types of economies-command (china)
-market (usa)
-mixed (canada)
Command economy benefits- many social services
- cradle-to-grave
- basic standard of living for all
Command economy limitations- personal freedoms are restricted
- little personal incentive to work hard
Command economy characteristics- private property is restricted
- profits belong to government
- competition is disallowed
Market economy benefits- freedom to make economic choices
- usually efficient use of resources
- new/improved products
- improved quality at lower prices
Market economy limitations- individual income levels vary
- production of unhealthy products
Market economy characteristics- private property allowed
- competition allowed
Mixed economy benefits- individual incentive to work hard
- acceptable level of social services
- consumers protected by law
Mixed economy disadvantages- taxes are high
- reduced incentive to work hard
Mixed economy characteristics- priv. prop. encouraged
- profit is encouraged
Business cycle-prosperity effect on business- expand (hire more employees)
- good opportunities for new businesses to start
- higher profits
Business cycle-prosperity effect on consumers- high employment
- more G/S available
- willing to buy more (because of good job pay)
Business cycle-prosperity effect on society- $ spent on research and development to produce better G/S
- more taxes paid by expanding businesses
- government spending increases because many workers pay taxes
Business cycle-inflation effect on business- operating costs increase due to material price increase
- pressure to increase wages to keep pace with inflation. increase selling price to consumers to maintain profitability
- businesses overstocked with goods as sales decrease
Business cycle-inflation effect on consumers- wages not keeping pace, less buying power
- lower demand for G/S
- fixed income people suffer
- consumers borrow $ to buy G/S before they increase in price
Business cycle-inflation effect on society- gov't must spend more to keep up with rising cost of gov't services
- higher interest rates, a benefit for long term investors
Business cycle-recession effect on business- spending fails, causing layoffs
- lower employee salaries/benifits
- expansion plans on hold
- bankruptcies on rise
Business cycle-recession effect on consumers- reluctant to spend as they fear job
- reduce spending on non-essential G/S
Business cycle-recession effect on society- More people using social programs
- Gov't strained to provide needed services
- Gov't not collecting as much tax $ due to more layoffs
Business cycle-depression effect on business- Bankruptcies and foreclosures common
- Unemployment very high
- profits dramatically down in all sectors of economy
Business cycle-depression effect on consumers- reduce spending on unnecessary goods
- salaries lower and job layoffs common
Business cycle-depression effect on society- social programs collapsing from overuse by needy & lack of funding
- gov't revenue very low
Business cycle-recovery effect on business- production increases due to increased demand of G/S that need replacing
- still cautious about spending
- begin to hire more employees
- slowly return to profitability
Business cycle-recovery effect on consumers- consumer confidence returns
- slowly replacing old G/S
- start to purchase "wants"
Business cycle-recovery effect on society- standard of living improves
- less people relying on gov't programs
- collecting more from employed workers and profitable businesses
Public sector business- usually don't make a profit
- different levels of government provide various services
Private sector business- businesses are individually owned and operated
Public-private partnership- risks, resources & expertise shared
Privatization- selling public owned business to private sector
Impact of business on communitygeneration of wealth, job creation, generation of income, standard of living, quality of life. gentrification
CPIconsumer price index. measure which checks the amount of inflation increase from a certain date
Inflationperiod of time where G/S increase and purchasing power decreases. Caused by expectations, money supply, government spending


Question Answer
factors affecting business success- personal (desire for control, vision, passion for job, perseverance, teamwork)
- economic conditions (uncontrollable conditions)
- government (taxes, control of distribution)
characteristics of successful entrepreneurs- self confident
- perceptive
- hardworking
- motivated
- resourceful
- able to manage risk
- creative
- goal oriented
- optimistic
- flexible
- independant
- visionary
- able to get along with others
- balance work and family life
why businesses fail- expanding too quickly
- lack of skill or knowledge
- lack of capital (poor budgeting)
- inability to stay competetive