Keeler [Key Terms]

Chapter 17

1. comparable worth - policy under which the government specifies a minimum wage for some occupations
2. craft union - labor organization that includes workers from a particular occupation
3. derived demand - demand for an input such as a labor is derived from the demand for the final product
4. industrial union - labor organization that includes all types of workers from a single industry
5. input-substitution effect - change in the quantity of labor demanded resulting from a change in the relative cost of labor
6. labor union - organized group of workers, the main objective of which is to improve working conditions, wages, and fringe benefits
7. learning effect - increase in a persons wage resulting from the learning of skills required for certain occupations
8. long-run demand curve for labor - curve showing the relationship between the wage and the quantity of labor demanded in the long run
9. marginal product of labor - change in output per unit change of labor
10. marginal revenue product of labor - extra revenue generated from 1 more unit of labor; equal to price of output times the marginal product of labor
11. market supply curve for labor - curve showing the relationship between the wage and the quantity of labor supplied
12. monopsony - market in which there is a single buyer of an output
13. output effect - change in the quantity of labor demanded resulting from a change in the quantity of output
14. short-run demand curve for labor - curve showing the relationship between the wage and the quantity of labor demanded in the short run
15. signaling or screening effect - increase in a person's wage resulting from the signal of productivity provided by completing college

Chapter 18

1. corporate bond - promissory note issued by a corporation when it borrows money
2. corporate stock - certificate that reflects in a corporation and gives the holder the right to receive a fraction of the corporation's profit
3. corporation - legal entity that is owned be people who purchase stock in the corporation
4. credit rationing - practice of limiting the amount of credit available to individual borrowers
5. demand curve for loanable funds - curve that shows the relationship between the interest rate and the quantity of loanable funds demanded by borrowers
6. dividends - part of a corporation's profit paid to stockholders
7. government bonds - promissory note issued by a government when it borrows money
8. interest rate - amount of money paid for the use of a dollar for a year
9. market for loanable funds - market in which savers (suppliers of funds) and borrowers (demanders of funds) interact to determine the equilibrium interest rate (price of loanable funds)
10. present value - maximum amount a person in willing to pay today for a payment to be received in the future
11. supply curve for loanable funds - curve that shows the relationship between the interest rate and the quantity of loanable funds supplied by savers

Chapter 19

1. Aid to Families with Dependent Children (AFDC) - government poverty program that provides assistance to families with children under the age of 18
2. dependency ratio - ratio of the population over 65 years of age to the population between 20 and 65
3. earned income tax credit (EITC) - tax subsidy given to low-wage workers
4. family - group of two or more individuals related by birth, marriage, or adoption who live in the same housing unit
5. household - group of related family members and unrelated individuals who live in the same housing unit
6. managed competition - health system in which organizations such as HMOs compete for patients
7. Medicaid - program that provides medical services to the poor
8. Medicare - government program that provides health benefits to those over 65 years of age
9. pay-as-you-go - retirement system that pay benefits to the old with taxes currently levied on the young
10. poverty budget - minimum amount the government estimates that a family needs to avoid being in poverty
11. social insurance - system that compensates individuals for bad luck, low skills, or misfortune
12. Social Security - government program that provides retirement, survivor, and disability insurance
13. Supplemental Security Income (SSI) - special program for the aged, the blind, and the permanently disabled