12 Economics - 8.3

Define Labor Union

Nonprofit organizations are not just limited to co-ops and civic groups. Many other groups besides co-ops organize nonprofit organizations to promote the interests of their members.

Labor union: an organization of workers formed to represent its members' interests in various employment matters. It participates in collective bargaining - when negotiating with management over issues such as pay, working hours, health-care coverage, vacations, and other job-related matters.

Define collective bargaining     

Explain what it means by chamber of commerce   

Explain the direct roles of the government.

Explain the indirect roles of the government. 

Some nonprofit organizations are formed to promote the interests of workers and consumers.

The government provides some goods and services while helping to make sure the economy runs smoothly.

Professional associations​: consist of people in a specialized occupation interested in improving the working conditions. skill levels, and public perceptions of the profession. An example of that is The American Medical Association.

Business associations: Examples of business associations are chamber of commerce or Better Business Bureau​. Chamber of commerce - an organization that promotes the welfare of its member businesses. And Better Business Bureau - business-sponsored nonprofit organization providing information on local companies to consumers.

Local, state, and federal governments operate as nonprofit economic organizations.

Government plays both a direct and indirect role in the economy.

Direct involvement— When government agencies produce and distribute goods and services to consumers. This is a direct role because government supplies a good or service that competes with private businesses.

Examples on a federal level: the Tennessee Valley Authority (TVA), Federal Deposit Insurance Corporation (FDIC), U.S. Postal Service (USPS).

Examples on a state level: State colleges and universities, Retirement plans, and statewide police

protection.

Examples on a local level: Police and fire protection, rescue services, and schools.

Example on all levels: Development and maintenance of roads and parks.

Government plays an indirect role when it acts as an umpire to help the market economy operate smoothly and efficiently, or when it gives a group of consumers a boost in purchasing power that they might not otherwise have.

This role is indirect because a government action does not encourage direct competition with private sector producers, but still has an impact on the economy.

Indirect involvement include: Antitrust Laws, Collage Scholarships, Social Security payments.