Wages, Labor, & Banking
How are wages for a job determined?
What is supply & demand.
Which bond type is a high risk of investment?
What is junk bond?
What is cyclical unemployment?
What is being laid off to changes in the business cycle, specifically during a recession?
What type of tax is the federal income tax?
What is progressive tax
How can competition in a scarce labor market affect wages?
What is wages increase?
What happens when you invest in a US savings bond?
What is you give a loan to the US government?
How does inflation affect those on a fixed income?
What is reduced spending power?
What is a budget surplus?
What is when the government spends less than it take in?
What is a trade deficit?
What are we import more than we export?
What is the largest income source for a bank?
What is interest on loans.
Why would the S & P 500 be a better measurement of stock performance than the DJIA?
What is a greater number of stocks averaged together?
Answers vary.
Possible answers:
Mall Santa & Lifeguard (seasonal)
Laid off due to insufficient skills at a canning factory & unemployed due to a factory closing. (structural)
How does the FED encourage banks to lend out more of their reserves?
What is reduce reserve requirements and discount rates?
What is the largest ocean on earth?
What is Pacific Ocean.
List the negotiation tactics between unions and company leaders.
What is mediation, arbitration, and collective bargaining?
What happens when you invest in a mutual fund?
What is money is invested in a variety of stocks and bonds.
What does a high level of energy consumption indicate?
What is a high level of economic growth.
What are easy money policy & tight money policy?
What is easy money policy is increase money supply?
What is tight money policy reduce money supply?
Why is real GDP used rather than current GDP to measure growth?
What is it is more accurate and is adjusted for inflation
What is the purpose of the Federal Deposit Insurance Corporation?
What is protects customer accounts if the bank fails?
What is a decrease in stocks ( a mean market) and investors begin to sell stocks.
What is demand-pull & cost-push theory of inflation?
Demand-pull: ALL sectors in the economy try to buy more good and services than the economy can produce.
Cost-push: rising input costs (especially energy & labor) drive up the costs of products for manufacturers and cause inflation.
What is expansionary & contractionary fiscal policy?
What is expansionary policy is used to bring the economy out of a recession by increasing government spending & cutting taxes.
What is contractionary policy is used by the government to decrease inflation by decreasing government spending and raising taxes.
What is the law of comparative advantage and how is it obtained?
What is the ability to produce a product with a lower opportunity cost and more efficiently?