Statistics for Edexcel Economics 8. Government Intervention in Markets

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Answer Stats

Description	Term	% Correct
Those two supermarkets the merger of which was blocked by the Competition and Markets Authority as it would have reduced competition and consumer choice and likely lead to price rises in both groceries and fuel, alphabetically	Asda and Sainsbury's	0%
They which may affect labour supply as if there are strict entry criteria for a profession such as law or medicine, the supply of labour will be restricted, forcing wages higher	Barriers to Entry	0%
That type of good which can be seen as a substitute for labour	Capital Goods	0%
That which can sometimes be a complement to labour due to the employment they can create in maintaining and operating them	Capital Goods	0%
A now mostly historical type of agreement in which an employer and union agree that all workers would be a member of a particular union, illegal since 1990	Closed Shop Agreement	0%
A 1998 act that deals with anti-competitive agreements between firms (such as cartels (made a criminal offence under the 2002 Enterprise Act)) and anti-competitive practices by one or more firms in a market, based largely on EU laws and regulations	Competition Act	0%
An organisation formed in 2014 by the merger of two agencies to investigate the mergers that cause a substantial lessening of competition (SLC), investigate markets with suspected competition problems, investigate anti-competitive agreements and practices, bring criminal proceedings against cartels, and protect consumers	Competition and Markets Authority (CMA)	0%
That which investigates a merger if the firms involved have a combined market share in the UK of over 25% and worldwide assets of over £70 million	Competition and Markets Authority (CMA)	0%
That type of policy which is often aimed at addressing monopolies, mergers, the reduction of x-inefficiency and deadweight loss, and the encouragement of allocative efficiency	Competition Policy	0%
A set of measures designed to promote competition in markets and protect consumers in order to enhance the efficiency of markets	Competition Policy	0%
A process by which the public sector calls for private firms to bid for a contract to provide a service, the local authority then choosing the most competitive bid (and most efficiency) such as with health visitors	Competitive Tendering	0%
The most significant and best know employers' organisation in the UK	Confederation of British Industry	0%
An EU employers' organisation that promotes business interest to ensure EU policy supports the European market and economy, of which the UK if one of 35 member countries	Confederation of European Business (BusinessEurope)	0%
That group which has criticised regulators as they often see them as being too lax on firms and accuse them of regulatory capture	Consumers	0%
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	Contestability	0%
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	Contracting Out	0%
Demand from employers who want to hire workers to do a job	Demand for Labour	0%
That demand which would increase with a rise in productivity ceteris paribus	Demand for Labour	0%
That which would decrease with a fall in the equilibrium price for the product it produces ceteris paribus	Demand for Labour	0%
The extent to which demand for a product or service can be substituted for another if price is increased	Demand Side-Substitutability	0%
That the aim of which is often to remove barriers to entry, thus potentially encouraging competition	Deregulation	0%
Demand for a good or service not for its own sake, but for what it produces, e.g. labour is demanded for the output that it produces	Derived Demand	0%
That type of demand represented by labour, the effect of which is that demand for labour is very sensitive to the price of the product it produces as well as its productivity	Derived Demand	0%
The relationship between the wage rate and the supply of labour ceteris paribus	Direct	0%
The relationship between price elasticity of demand and wage elasticity of demand for labour ceteris paribus	Direct	0%
Organisations of businesses and other employers that represent and promote the interests of their members	Employers' Organisations	0%
A restrictive practice whereby a supplier sells to only one buyer	Exclusive Supply	0%
That industry in which historic deregulation has been heavily criticised for resulting in no action being taken to restrain banks in the lead up to the Great Recession	Financial Services	0%
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	Firms	0%
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.	Geographic Immobility of Labour	0%
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	Geographic Immobility of Labour	0%
That which might encourage government to allow monopolies to form as a large domestic firm may be better able to compete internationally as is the case with airlines	Globalisation	0%
That which might encourage government to oppose monopolies as if a firm faces domestic competition it will incentivise it to increase productive efficiency, making it more competitive globally	Globalisation	0%
That one of the side effects of the response to which, namely the large loans and bailouts given to banks by the government, was that it increased competition by encouraging banks to lend to small businesses	Great Recession	0%
The relationship between the wage rate and demand for labour ceteris paribus	Inverse	0%
That the total supply of which in an economy can be affected by the school leaving age, state pension age, the number of economically active women, migration, and working hours (part-time, full-time, etc)	Labour	0%
Where jobs are available as are people willing and able to take them, but the jobs and people face a geographic or occupational disconnect	Labour Immobility	0%
That type of market in which market failure is principally causes by geographic immobility, occupational immobility, and monopsony power	Labour Market	0%
A market for the services of the factor of production of labour	Labour Market	0%
Where demand for labour and the supply of labour are equal	Labour Market Equilibrium	0%
The additional cost to a firm of adding an additional unit of labour, such as wages and hiring costs, etc.	Marginal Cost of Labour	0%
The additional output produced by a firm increasing its labour input by one unit (such as one more person-hour) holding capital constant, and subject to the law of diminishing returns	Marginal Physical Product of Labour (MPPL)	0%
A theory that the demand for labour depends upon balancing the marginal revenue product of labour against the marginal cost of labour	Marginal Productivity Theory	0%
The additional revenue received by a firm increasing output by using an additional unit of labour input, calculated as the marginal physical product of labour × marginal revenue	Marginal Revenue Product of Labour (MRPL)	0%
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	Market Wage Rate	0%
That opposite of a minimum wage which in the EU takes the form of a bonus cap of 100% of salary or 200% with shareholder approval	Maximum Wage	0%
That which has kept the wage rate for low skilled jobs low as there is greater supply of those who will work for less, while those working illegally have no means of redress	Migration	0%
A government set wage rate below which firms are not allowed to pay	Minimum Wage	0%
That type of wage the effect of which depends on price elasticity of demand, wage elasticity of demand for labour, the stage of the economic cycle, whether it encourages increased productivity, and the amount of time over which it is set	Minimum Wage	0%
That type of wage which does not increase or cause unemployment if it is set below equilibrium, ceteris paribus	Minimum Wage	0%
That type of wage, alternatives to which are the living wage, income tax reform, capital investment to increase productivity, and a work for welfare scheme	Minimum Wage	0%
Those types of wages that can negatively affect people's real incomes by causing cost-push inflation	Minimum Wages	0%
That market structure, an advantage of which over perfect competition is that it has the potential to earn supernormal profits, allowing for investment in research and development and a potential increase in productive efficiency	Monopoly	0%
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	Monopsonies	0%
That which has been criticised for not taking into account regional variations, leaving opportunities for employers to bypass it (such as a piecework rate), not being targeted enough to tackle poverty, potentially causing unemployment by reducing demand for labour, and possibly harming small businesses and competitiveness	National Minimum Wage	0%
A policy that came into force in 1999 which set a countrywide minimum wage, differing depending on age, and revised each year	National Minimum Wage	0%
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	National Minimum Wage	0%
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	Natural Monopolies	0%
Benefits offered to workers by firms that are not financial in nature (such as training, job security, etc), effecting an individual's labour supply and potential job choice	Non-Pecuniary Benefits	0%
That aspect of labour which can be affected by a lack of information on other jobs, the ease of gaining the necessary training or qualifications, etc	Occupational Immobility of Labour	0%
That aspect of labour which can cause structural unemployment and skills shortages, as people are not able to fill vacancies	Occupational Immobility of Labour	0%
That which the government tries to tackle by funding training, education, and apprenticeships, such as the apprenticeship levy, a tax paid by employers with an annual pay bill over £3 million, allowing them to access apprenticeship funding	Occupational Immobility of Labour	0%
That type of market structure which might lead to competition rather than collusion where firms are of equal market share and especially where the market is not growing, allowing firms to expand only at another's expense	Oligopoly	0%
The proportion of the population of working age people whom are in employment or seeking work	Participation Rate	0%
Those workers which were sometimes employed in greater numbers as they had fewer work benefits compared to full-time workers, until the government close such a loophole by equalising employment benefits	Part-Time Workers	0%
Where a regulator sets targets to meet, such as average train delay times which may incur fines if not met or rewards if achieved	Performance Targets	0%
That the elasticity of which, increases a firm's wage elasticity of demand for labour	Price	0%
Where the prices charged by firms are regulated such as by price caps of the RPI - X system?	Price Regulation	0%
That which has been criticised as where the public sector can borrow more cheaply it raises costs, and it focuses more heavily on efficiency and low costs than it does on quality	Private Finance Initiative (PFI)	0%
The most common type of public-private partnership, launched in 1992, where the private sector designs, builds, finances, and operates an asset and associated service for the public sector in return for an annual performance based payment over around 25-30 years, after which said asset becomes state property	Private Finance Initiative (PFI)	0%
That, the benefit of which the that it can improve the financing of public sector projects, and allows for risk to be shared between the public and private sectors, hopefully allowing for gains in efficiency	Private Finance Initiative (PFI)	0%
That which the public sector takes the lead from in setting wages so as not to cause excess supply or a skills shortage	Private Sector	0%
That the disadvantages of which are that it can cause profit to be placed above service quality or coverage, may result in less concern being given to externalities, and does not necessarily increase competition if state concerns are sold as monopolies, all the while possibly reducing public sector revenue	Privatisation	0%
That which was done to some natural monopolies such as power, water, and rail in the 1980's due to criticism of their pricing systems and a severe lack of accountability on behalf of the managers to consumers	Privatisation	0%
That the advantages of which are that it can increase efficiency due to the need to produce what people want at competitive prices, can increase flexibility, and can (if increasing efficiency and profit) also increase government revenue from corporation tax	Privatisation	0%
Where the profits made by firms are regulated such as by limiting the permitted rate of return	Profit Regulation	0%
That an example of which is where the rate-of-return of a firm is limited by the regulator having the issue of removing the possibility of making supernormal profits and thus an incentive to increase efficiency	Profit Regulation	0%
Those types of tax rates which need to be balanced as if they are too high for those on high incomes they may reduce incentives to work harder, while if they are too low for those on high incomes, they may cause extreme inequality and the problems associated with such	Progressive Tax Rates	0%
Where a government service or private business venture is funded and operated through a partnership of government and the private sector	Public-Private Partnership (PPP)	0%
The sector in which most trade union members work	Public Sector	0%
Where a regulator monitors a firm or industry to ensure certain standards are met, such as the quality of drinking water	Quality Standards	0%
Those types of body, of which the UK's four main industrial ones are; Ofcom (communications), Ofgem (electricity and gas), Ofwat (water), and the Office of Rail and Road (ORR)	Regulator	0%
Those bodies, the four principal methods of which for controlling firms' policies are; price regulation, profit regulation, quality standards, and performance targets	Regulators	0%
Where the regulator of an industry becomes so closely involved with said industry that it begins representing the industry's interests rather than regulating it, such as had been accused of financial regulators by their being staffed by many former bankers	Regulatory Capture	0%
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	Relevant Market	0%
A restrictive practice whereby firms supply products subject to the condition that they are sold at recommended prices	Resale Price Maintenance	0%
The lowest wage at which an individual is willing to supply labour for a particular job	Reservation Wage	0%
Practices aimed at reducing competition	Restrictive Practices	0%
The pricing system used of Ofwat where price is set at the change in the Retail Price Index plus Ofwat's estimate of the amount needed for capital investment	RPI + k	0%
Where regulators set the pricing system (usually only of variable costs) of privatised industries at the change in the Retail Price Index minus the possible productivity gain (X) in terms of average costs, criticised for it being difficult to determine the value of X and for X possibly being achieved by reducing quality	RPI - X	0%
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	Small Businesses	0%
That which assumes that there is not cost difference between market structures, in reality refuted by the presence of economies of scale	Structure-Conduct-Performance Paradigm	0%
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	Structure-Conduct-Performance Paradigm	0%
That, the consequent conclusion of which is that any increases in market concentration such as due to a merger always increase allocative efficiency in the market's performance	Structure-Conduct-Performance Paradigm	0%
Where a practice or event results in a significant decrease in competition	Substantial Lessening of Competition (SLC)	0%
The number of people willing and able to sell their factor of labour to employers	Supply of Labour	0%
The extent to which an increase in price may induce other supplies to enter the market, related to contestability	Supply-Side Substitutability	0%
A restrictive practice where a supplying firm requires its customers to buy other products	Tie-In Sales	0%
That body which most trade unions are members of	Trades Union Congress (TUC)	0%
Those, membership of which has declined due to restrictive legislation (such as regards industrial action), an increase in flexible (part time, etc.) labour markets, deindustrialisation, and globalisation	Trade Unions	0%
Those organisations which most commonly go about achieving their goals via bi-lateral negotiations with employers	Trade Unions	0%
Workers organisations that seek to protect and improve members' real incomes, job security, working conditions, pension rights, security against unfair dismissal, compensation rights, etc., via collective bargaining with employers	Trade Unions	0%
Those the density of which have decreased from covering one third of all workers in 1995 to below one quarter	Trade Unions	0%
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	Trade Unions	0%
That which might be decreased by setting a minimum wage, as it may raise workers' purchasing power and thus demand for goods and services, incentivising increased production ceteris paribus	Unemployment	0%
That which needs to be balanced as if it is set too high it may discourage participation in the labour market, while if they are too low it may not adequately protect vulnerable people, while also discouraging people from leaving their job to search for a better one, reducing labour market flexibility	Unemployment Benefits	0%
The two biggest trade unions in the UK, respectively	Unison and Unite	0%
A restrictive practice where a vertically integrated firm that controls the supply of a product charges competitors a high price so that they cannot compete on equal terms in selling the product	Vertical Price Squeezing	0%
The degree of responsiveness of the demand for labour to changes in the wage rate	Wage Elasticity of Demand for Labour	0%
That which determines the affect on total employment of trade unions successfully negotiating a higher wage rate	Wage Elasticity of Demand for Labour	0%
That aspect of labour which is most affected by the existence of substitutes such as capital goods, the proportion of a firm's costs absorbed by labour (low where mechanisation is high), and time, with capital goods being difficult to acquire and integrate in the short run	Wage Elasticity of Demand for Labour	0%
The degree of responsiveness of the supply of labour to changes in the wage rate	Wage Elasticity of Supply for Labour	0%
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.	Wage Elasticity of Supply for Labour	0%
That which if increased, may cause a substitution effect against labour as the opportunity cost of leisure would increase, encouraging people to work more hours ceteris paribus	Wage Rate	0%
The price a firms pays for employing labour	Wage Rate	0%
That which can be seen as being the opportunity cost of leisure	Wage Rate	0%
That which if increased, may cause an income effect encouraging leisure consumption as an individual receiving a higher income will have more to spend on leisure	Wage Rate	0%
That which governments often try to reduce in the public sector by encouraging public-private partnership (PPP)	X-Inefficiency	0%
Those which are supported as they provide flexibility to workers and ensure employers do not pay for labour they do not need, but criticised for giving no job security or guaranteed income and for calling people into work at short notice	Zero Hour Contracts	0%
Employment contracts where no minimum working hours are guaranteed and the worker is not obliged to accept those offered	Zero Hour Contracts	0%