Notes by Danny
Values: The monetary value of a good or a service the market puts on it.
Ex: Videos games, food, clothing, etc.
Utility: Something of value that can be useful and also provide satisfaction. Utility can also vary from one person to another.
Ex: One person may like a bike to ride; and the other person may not like bikes.
Durable goods: Any good that can last three or more years when used with regularity.
Ex: Cars, computers, Florescent light bulbs, etc.
Service: Work that is done by someone to another person.
Ex: A Lawyer, Nurse, Electrician, etc.
Inflation & Adjustment
Notes by Andy
Inflation: rise in prices.
Fixed income: income that stays the same even when inflation occurs.
Current dollars vs real dollars: prices that have not been adjusted for inflation vs prices that have been adjusted for inflation.
Base year: year that serves as comparison for other years in a statistical measure.
Minimum wage: lowest possible legal pay, that can be paid to most workers.
Inflation: rise in prices.
Fixed income: income that stays the same even when inflation occurs.
Current dollars vs real dollars: prices that have not been adjusted for inflation vs prices that have been adjusted for inflation.
Base year: year that serves as comparison for other years in a statistical measure.
Minimum wage: lowest possible legal pay, that can be paid to most workers.
Macro & Microeconomics & the 3 Big Questions
Notes by Ana
- Economics: study of how people try to satisfy seemingly unlimited and competing wants through the careful use or relatively scarce resources.
o Microeconomics: deals with behavior and decision making by small units such as individuals and firms.
o Macroeconomics: deals with the economy as a whole and decision making by large units such as governments and unions.
- Scarcity: condition in which there is a lack of resources to produce things that people need or want.
- 4 Factors of Production
o Land: “gifts of nature.” Natural resources, for example deserts, forests, livestock, and climate (limited supply).
o Capital: tools, equipment, and factories used in production.
o Labor: people that offer their skills, abilities, and efforts.
o Entrepreneurs: “innovators.” Driving force of the economy uses resources to create something new.
- 3 Basic Questions
o WHAT to produce: society cannot have everything its people want.
o HOW to produce: see which method is lower in cost so that the items are less expensive, which could be more affordable.
o FOR WHOM to produce: society must decide who will receive the things produced.
(ANSWERED ONLY WHEN THERE ARE NOT ENOUGH RESOURCES TO SATISFY PEOPLE’S UNLIMITED WANTS AND NEEDS)
- Economics: study of how people try to satisfy seemingly unlimited and competing wants through the careful use or relatively scarce resources.
o Microeconomics: deals with behavior and decision making by small units such as individuals and firms.
o Macroeconomics: deals with the economy as a whole and decision making by large units such as governments and unions.
- Scarcity: condition in which there is a lack of resources to produce things that people need or want.
- 4 Factors of Production
o Land: “gifts of nature.” Natural resources, for example deserts, forests, livestock, and climate (limited supply).
o Capital: tools, equipment, and factories used in production.
o Labor: people that offer their skills, abilities, and efforts.
o Entrepreneurs: “innovators.” Driving force of the economy uses resources to create something new.
- 3 Basic Questions
o WHAT to produce: society cannot have everything its people want.
o HOW to produce: see which method is lower in cost so that the items are less expensive, which could be more affordable.
o FOR WHOM to produce: society must decide who will receive the things produced.
(ANSWERED ONLY WHEN THERE ARE NOT ENOUGH RESOURCES TO SATISFY PEOPLE’S UNLIMITED WANTS AND NEEDS)
The Labor Movement
Notes by Adriana
· After the Civil War, prices were higher and there was a greater demand for goods and services, which made labor force more unified.
· Labor movement was an organization of working people to fight for their own interest.
· Unions are important because they play a major role in creating legislation. They were first created to help workers negotiate and obtain better and higher pay, hours and working conditions.
· Labor unions were formed to help workers get organized and bargain for their needs and rights. Workers created unions because groups have more bargaining power than individuals. When large groups of employees make joint decisions, employers are forced to listen to their concerns.
· There were several things worker did if an agreement was not reached.
a) Strike- they would not work until some demands were met.
b) Picket- they would march in front of a company or business to protest certain actions the company did not meet.
c) Boycott- they refused to buy products from a certain company or employer.
· There were also several ways in which employers fought unions.a) Lockout- which was the same concept of the strike but instead of the employees would not allow employers to work.
b) Company unions- unions organized by employers to fight off the efforts of the workers.
· The Great Depression- the worst period of economic decline in US history. It began in October 1929 and ended approximately in 1939. In this time period, many people were unemployed, so Congress decided to pass laws to support organize labor.
· At the same time, states passed laws to limit the power of unions. This caused even more unemployment because workers were not allowed to join the unions.
· The American Federation of Labor (AFL) first began in 1886 as an organization of trade unions. It later added several industrial unions which caused conflicts and disagreements about future union movements. The caused AFL to separate into 2 different groups. Then, the Congress of Industrial Organization (CIO) was created. As it grew stronger, it began to challenge AFL, which later joined to become the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO.) Later on, around 2005, AFL-CIO broke up because they started having disputed about the best way to spend union funds.
· Independent unions, unions that did not belong to the AFL-CIO, were also important in the labor movement.
· There were several kinds of union arrangements:
a) Closed shop- agreement in which a worker was forced to join a union before they get hired.
b) Union shop- agreement in which workers had to join a union after they were hired.
c) Modified union shop- workers had the option to join or not.
d) Agency shop- does not require a worker to join a union to keep or get a job.
· There are millions of people that are still part of unions. Even though there is gap between different groups in the US, it has become lower every year. Statistics show that more women, old people and African Americans are more likely to join unions than any other group.
· Unions have been a great part of labor movement which has been changing throughout the years. Unions started to rise due to the different acts or laws passed by Congress, but started to decline for various reasons. Some of these reasons include: the increase of part-time workers, the rise in the number of women in the workforce, and the expansion of service industries, among others.
· After the Civil War, prices were higher and there was a greater demand for goods and services, which made labor force more unified.
· Labor movement was an organization of working people to fight for their own interest.
· Unions are important because they play a major role in creating legislation. They were first created to help workers negotiate and obtain better and higher pay, hours and working conditions.
· Labor unions were formed to help workers get organized and bargain for their needs and rights. Workers created unions because groups have more bargaining power than individuals. When large groups of employees make joint decisions, employers are forced to listen to their concerns.
· There were several things worker did if an agreement was not reached.
a) Strike- they would not work until some demands were met.
b) Picket- they would march in front of a company or business to protest certain actions the company did not meet.
c) Boycott- they refused to buy products from a certain company or employer.
· There were also several ways in which employers fought unions.a) Lockout- which was the same concept of the strike but instead of the employees would not allow employers to work.
b) Company unions- unions organized by employers to fight off the efforts of the workers.
· The Great Depression- the worst period of economic decline in US history. It began in October 1929 and ended approximately in 1939. In this time period, many people were unemployed, so Congress decided to pass laws to support organize labor.
· At the same time, states passed laws to limit the power of unions. This caused even more unemployment because workers were not allowed to join the unions.
· The American Federation of Labor (AFL) first began in 1886 as an organization of trade unions. It later added several industrial unions which caused conflicts and disagreements about future union movements. The caused AFL to separate into 2 different groups. Then, the Congress of Industrial Organization (CIO) was created. As it grew stronger, it began to challenge AFL, which later joined to become the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO.) Later on, around 2005, AFL-CIO broke up because they started having disputed about the best way to spend union funds.
· Independent unions, unions that did not belong to the AFL-CIO, were also important in the labor movement.
· There were several kinds of union arrangements:
a) Closed shop- agreement in which a worker was forced to join a union before they get hired.
b) Union shop- agreement in which workers had to join a union after they were hired.
c) Modified union shop- workers had the option to join or not.
d) Agency shop- does not require a worker to join a union to keep or get a job.
· There are millions of people that are still part of unions. Even though there is gap between different groups in the US, it has become lower every year. Statistics show that more women, old people and African Americans are more likely to join unions than any other group.
· Unions have been a great part of labor movement which has been changing throughout the years. Unions started to rise due to the different acts or laws passed by Congress, but started to decline for various reasons. Some of these reasons include: the increase of part-time workers, the rise in the number of women in the workforce, and the expansion of service industries, among others.
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