what is dollar voting?
Consumers vote for the goods and services they want by spending their dollars
What is consumer sovereignty?
consumers vote with their dollars how they want the allocation of scarce resources being used
Why would an industry expand?
They’re making money, more than they thought they were going to make. Make businesses bigger with extra money
What was the first permanent union structure in US?
American Federation of Labor (AFL) 1881 founded on the principles of Samuel Gompers
What are the 3 principles of the AFL?
1, belief that uions should only be converned with the problems of their members, working conditions, hours, wages, job security, etc.
- Political Neutrality. unions should stay out of politics and the government should stay out of the union
- Trade autonomy. Unions should be organized on the basis of trade (one union for each craft or trade)
AFL did not include industrial workers, Industrial workers made thier own union called the Congress of Industrial Organization in 1955. The 2 unions merged and became the AFL-CIO.
How do unions obtain benefits for their members?
- in politics supporting or opposing certain legislature or candidates.
- Collective bargaining- negotiating labor agreement, settling labor agreements under contract
What does the US government do to keep the economy stable and growing?
If the economy is growing too quickly, the federal reserve board will stimulate a sluggish economy and slow down an economy that is in danger of inflating.
what is economic mobility?
referrs to the ability of factors, particularly labor, to move around the country, in response to employment opportunities.
What is the downfall of the US economic system?
Inequality in terms of income (poor people)
Who was John Maynard Keynes?
good economy is when government regulations and spending on public works would stimulte the economy and lead to full employment (New Deal, Hoover damn)
