(GED Social Studies/Economics; Lesson 4)-Labor And Consumer Issues

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In United States workers earn wages and other benefits in exchange for their labor. Some workers are paid monthly. Their earning might fluctuate depending if they are needed. Workers that are paid monthly that are in terms of salaries, receive constant pay all the time even though the number of hours may fluctuate. While some are pay for a piece of work they complete. In addition many workers also enjoy benefits like health insurance, vacation pay and special saving plans.

Businesses are bound to change over time, so there is need for workers and employers to pay taxes and buy insurances that covers work related problems that includes unemployment, injuries and disability. Workers need to adapt to changes in their industries and get skills needed to overcome changes that face the industries or in the U.S. economy.

Labor unions are common in several industries and professions. They help in negotiating contracts for wages and working conditions on behalf of the union members. If these negotiations are not agreed at the stipulated time, the union will then call for a strike. The national labor relations board will then come in if the labor-management negotiations break down. Their job is to help in settling the disputes between the companies and the unions.

In the U.S. economy system, this is known as the free market system.  Consumers have varieties of choice to make. So consumers need to be aware of goods and service being advertised or sold to them. Although government agencies must protect consumers by giving conditions and guidelines to goods and services that might cause harm to the consumer. But consumers need to also protect themselves and know what favors them.


  1.  …………. Is a worker total compensation? A. The amount received in unemployment B. Wages only C. Benefits only D. Wages and benefits


2. …………. Negotiate contracts on behalf of the union members?

A. Federal moderators

B. Labor unions

C. Federal government agencies

D. Professions


3. From the passage if labor-management negotiations breakdown… Maybe asked to intervene?

A. Labor union

B. Federal moderators

C. Consumers

D. Workers