Edexcel Economics 8. Government Intervention in Markets

Description

Term

Those organisations, the bargaining power of which can be increased by low unemployment, whether its members provide a key service, public support (such as for nurses), and a high proportion of workers in an industry being members

That aspect of labour which can be affected by the presence of friends and family, the ease of moving house, the ease of searching for jobs further afield, immigration law, the number of working people in a household, the cost of living, whether the household has children in school, etc.

Where the profits made by firms are regulated such as by limiting the permitted rate of return

Those which the government tries to protect by providing grants, loans, and tax incentives, training or apprenticeship schemes, and advice and support such as via the Business Support Helpline

A market to be investigated under competition law, defined so as to include all major substitutes and omit non-substitutes, by considering demand-side substitutability and supply-side substitutability

That group which has criticised regulators as they often see them as being too harsh, frequently underestimating costs, overestimating possible efficiency gains, and impeding their ability to effectively plan long term

The wage rate at which the total quantity of labour supplied in a market equals the total quantity of labour demanded by firms in said market

The degree of responsiveness of the supply of labour to changes in the wage rate

That which the government tries to tackle through Regional Policy, which provided incentives such as grants or loans to firms that move to areas of high unemployment, often criticised for being too low and now threatened as much funding comes via the EU Regional Policy Framework

That demand side concern that regulators also intervene in such as when supermarket Tesco exploited its market power to purchase product from small farmers and suppliers cheaply

Description

Term

Where the public sector places activities in the hands of a private firm and pays for their provision, often done for public goods such as waste disposal

A government set wage rate below which firms are not allowed to pay

That, the presence of which in monopoly markets, affects government intervention, as where it is greater such as due to weak barriers to entry or low sunk costs then a firm cannot set price above average cost without causing hit-and-run entry, reducing the need for intervention

The most significant and best know employers' organisation in the UK

That the purpose of which is to protect workers from exploitation, alleviate poverty, prevent voluntary unemployment by making work pay, and encourage firms to invest in training to increase productivity

The idea that the structure of a market in terms of the number of firms, determines how said firms conduct themselves, which in turn determines how well the market performs in achieving productive and allocative efficiency

A restrictive practice where a supplying firm requires its customers to buy other products

That which the public sector takes the lead from in setting wages so as not to cause excess supply or a skills shortage

Those types of monopolies the privatisation in the 1980's of which was undertaken alongside the encouragement of competition where feasible (dependent on economies of scale) and regulation, focused mostly on price

That aspect of labour which is most affected by time (such as that taken to retrain, or in notice required to be given by an employment contract), and the ease with which the workforce can expand or contract such as due to unemployment, skills shortages, etc.