Tuesday, March 08, 2011

Honors Business Economics: 9 March 2011

Beyond the Sound Bites (after the Quiz if time):

Chapter 7 Section 3 Quiz Prep Page is available.

The Chapter 7 Test Prep Page is available.

The Chapter 7 Section 1 Quiz is today.

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.

If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.

Be sure your name is on both the Scantron and the Quiz.

If your name is not on the Quiz it will not be returned.

The Chapter 6 Test Make-up is today.

After the Quiz:

Cf. http://www.youtube.com/watch?v=r2gONotoLz8

March 2 (Bloomberg) -- Andrew Zimbalist, an economics professor at Smith College, discusses the outlook for the outcome to the ongoing labor negotiations between the National Football League owners and players and the potential impact of a strike or lockout on the NFL. The collective bargaining agreement ends at 11:59 p.m. Eastern time March 3. Zimbalist speaks with Margaret Brennan on Bloomberg Television's "InBusiness." (Source: Bloomberg)

The Ch. 6 Sec. 3 Quiz Make-up is today.

The Ch. 6 Sec. 2 Quiz Make-up is today.

Standard feature:

The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.

Please follow the steps below:

URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Username: bshsinky@shanahan.org
Password: 10888

Chapter 8 - The American Labor Force

Section 2: Wages and Labor Disputes

Different occupations and levels of training are rewarded with different wages. Economists divide labor into four non-competing labor grades based on a worker's education, training, and skills. These categories include unskilled labor, semiskilled labor, skilled labor, and professional labor. In addition, there are many negotiation methods: collective bargaining, mediation, arbitration, fact-finding, injunction, and seizure. Finally, the president may intervene in a labor-management dispute.

Content Vocabulary

wage rate

unskilled labor

semiskilled labor

skilled labor

professional labor

market theory of wage determination

equilibrium wage rate

theory of negotiated wages


signaling theory

collective bargaining, p. 211

In-class assignment: with a partner, answer the questions.

Teacher Collective Bargaining - Caroline Hoxby, Ph.D. - Show-Me Institute, 3:18

Teacher Collective Bargaining

Cf. http://ant.umn.edu/vav.php?pid=62159901195420'

View the embedded player with Teacher Collective Bargaining

http://www.showmeinstitute.org/ - Caroline Hoxby, Ph.D., the Scott and Donya Bommer Professor of Economics at Stanford University, spoke with the Show-Me Institute on May 5, 2009, about the effects of collective bargaining on attracting and retaining quality teachers in United States public schools. Hoxby is also a senior fellow of the Hoover Institution, the director of the Economics of Education Program at the National Bureau of Economic Research, and Senior Fellow of the Stanford Institute for Economic Policy Research.

1. Are union teachers better than non-union teachers?
2. Does collective bargaining encourage or harm learning? Why?
3. Do unions protect weak teachers? Why?

grievance procedure



binding arbitration




Academic Vocabulary

Chapter 8, Section 2 - Reading Strategy

In-class assignment: with a partner, fill in the graphic organizer.
Complete the graphic organizer that describes the different ways labor disputes are resolved.

Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec2_1.pdf
Issues in the News

NHL Shakes Off Lockout, Long Layoff

Wage Determination

Noncompeting Categories of Labor

In-class assignment: with a partner, answer the following.

What does the market theory explain?
What does Panel A show?
What does Panel B show?
What does Panel A illustrate?
What does Panel B illustrate?

Figure 8.5 Market Theory of Wage Determination, p. 209

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p209.swf

Market Theory of Wage Determination

Did You Know?

Theory of Negotiated Wages

Signaling Theory

Reading Check


What is the difference between the market theory of wage determination and the theory of negotiated wages?

Resolving Labor Disputes

Collective Bargaining




Injunction and Seizure

Presidential Intervention

Both Reagan and Clinton (once in less than 30 minutes) intervened in labor disputes.

Ronald Reagan-Remarks on the Air Traffic Controllers Strike (August 3, 1981), 3:12

Cf. http://ant.umn.edu/vav.php?pid=62168246537355

View the embedded player with the air traffic controller content.

1. Did the air traffic controllers make more money than other government employees? How much more?
2. Why were they compensated the way they were?
3. Did the controllers accept the agreement?
4. Did Reagan call for a strike as a member himself of a union?
5. Can public unions shut down the operations of the government and harm others?

Reading Check


In what ways can labor and management resolve disputes?

Chapter 8, Section 2 - Review

In-class assignment: with a partner, fill in the graphic organizer.

Describe the four approaches to wage determination.

Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec2_2.pdf

Case Study Harley-Davidson

Harley-Davidson economics, 6:11

Section 3: Employment Trends and Issues

There are several trends and issues in today's economy. The first is the continuing decline of union membership and influence since the end of World War II. The second is the income gap between men and women, and policies such as set-aside contracts, which are designed to remedy it. The last is the issue of the minimum wage, which is measured in current dollars, inflation-adjusted dollars, and as a percent of the average manufacturing wage.

Chapter 8, Section 3 - Reading Strategy

In-class assignment: with a partner, fill in the graphic organizer.

Explain why women face an income gap.

Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec3_1.pdf

Chapter 8, Section 3 - Review

In-class assignment: with a partner, fill in the graphic organizer.

List three ways firms renegotiate union contracts.

Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec3_2.pdf

Offshoring American Jobs to India

Test Prep resources

Chapter 8 Crossword Puzzle

Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch08/index.html

Vocabulary Flashcard

Cf. http://www.glencoe.com/qe/efcsec.php?qi=15443

Self-check Quiz

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter8/self-check_quizzes.html

Ch. 6 Prep

Chapter 6: Prices and Decision Making
Multiple Choice Quiz

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter6/self-check_quizzes.html

ePuzzle Concentration

Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_05/chapter06/index.html

Academic, Glossary, People/Places/Events

Cf. http://www.glencoe.com/qe/efcsec.php?qi=15429

Chapter 7 Resources

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter7/


Unit 3: Economic Institutions and Issues

Chapters 8-11

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/

Deadline for Action: Labor Unions & Corporate Influence on the U.S. Congress (1/3) (1946), 10:08

John Llewellyn Lewis (1880--1969) was the autocratic president of the United Mine Workers of America (UMW) from 1920 to 1960, and the driving force behind the founding of the Congress of Industrial Organizations (CIO). Using UMW organizers the new CIO established the United Steel Workers of America (USWA) and organized millions of other industrial workers in the 1930s. A powerful speaker and strategist, Lewis did not hesitate to shut down coal production—the nation's main energy and heating source—to achieve his goals.

Lewis threw his support behind Franklin D. Roosevelt (FDR) at the outset of the New Deal. After the passage of the Wagner Act in 1935, Lewis traded on the tremendous appeal that Roosevelt had with workers in those days, sending organizers into the coal fields to tell workers that "The President wants you to join the Union." His UMW was one of FDR's main financial supporters in 1936, contributing over $500,000.

Lewis expanded his base by organizing the so-called "captive mines," those held by the steel producers such as U.S. Steel. That required in turn organizing the steel industry, which had defeated union organizing drives in 1892 and 1919 and which had resisted all organizing efforts since then fiercely. The task of organizing steelworkers, on the other hand, put Lewis at odds with the AFL, which looked down on both industrial workers and the industrial unions that represented all workers in a particular industry, rather than just those in a particular skilled trade or craft.

Lewis was the first president of the Committee of Industrial Organizations. Lewis, in fact, was the CIO: his UMWA provided the great bulk of the financial resources that the CIO poured into organizing drives by the United Automobile Workers (UAW), the USWA, the Textile Workers Union and other newly formed or struggling unions. Lewis hired back many of the people he had exiled from the UMWA in the 1920s to lead the CIO and placed his protégé Philip Murray at the head of the Steel Workers Organizing Committee. Lewis played the leading role in the negotiations that led to the successful conclusion of the Flint sit-down strike conducted by the UAW in 1936-1937 and in the Chrysler sit-down strike that followed.

The CIO's actual membership (as opposed to publicity figures) was 2,850,000 for February 1942. This included 537,000 members of the UAW, just under 500,000 Steel Workers, almost 300,000 members of the Amalgamated Clothing Workers, about 180,000 Electrical Workers, and about 100,000 Rubber Workers. The CIO also included 550,000 members of the United Mine Workers, which did not formally withdraw from the CIO until later in the year. The remaining membership of 700,000 was scattered among thirty-odd smaller unions. (Galenson, p. 585)

The war mobilization dramatically expanded union membership, from 8.7 million in 1940 to over 14.3 million in 1945, about 36% of the work force. For the first time large numbers of women factory workers were enrolled. Both the AFL and CIO supported Roosevelt in 1940 and 1944, with 75% or more of their votes, millions of dollars, and tens of thousands of precinct workers. However, Lewis opposed Roosevelt on foreign policy grounds in 1940. He took the Mine Workers out of the CIO and rejoined the AFL. All labor unions strongly supported the war effort after June 1941 (when Germany invaded the Soviet Union). Left-wing activists crushed wildcat strikes. Nonetheless, Lewis realized that he had enormous leverage. In 1943, the middle of the war, when the rest of labor was observing a policy against strikes, Lewis led the miners out on a twelve-day strike for higher wages; the depth of public dismay—even hatred—of Lewis was palpable. In November 1943 the Fortune poll asked, "Are there any prominent individuals in this country who you feel might be harmful to the future of the country unless they are curbed?" 36% spontaneously named Lewis. (Next came 3% who named Roosevelt.) As a result the Conservative coalition in Congress was able to pass anti-union legislation, leading to the Taft-Hartley Act of 1947.

American Free Enterprise System: Your Town - A Story of America (1940), 10:57

Easy Rider, 2:47

Cf. http://www.youtube.com/watch?v=nIfUD70yvz8

Ch. 6 Sec. 1 Quiz Make-Up is available to take.

Ch. 6 Sec. 2 Quiz Prep Page is available.

Email (or hand in hard copy) to gmsmith@shanahan.org.

Wednesday HW
1. p. 224, #1-10
Thursday HW
1. p. 224, #11-20
Friday HW
1. p. 224, #27