Edexcel Economics 8. Government Intervention in Markets

Description

Term

A set of measures designed to promote competition in markets and protect consumers in order to enhance the efficiency of markets

Where a regulator sets targets to meet, such as average train delay times which may incur fines if not met or rewards if achieved

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

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

That which can be seen as being the opportunity cost of leisure

The extent to which demand for a product or service can be substituted for another if price is increased

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

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

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

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

Description

Term

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.

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

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

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

Where a government service or private business venture is funded and operated through a partnership of government and the private sector

That which determines the affect on total employment of trade unions successfully negotiating a higher wage rate

That demand which would increase with a rise in productivity ceteris paribus

That which assumes that there is not cost difference between market structures, in reality refuted by the presence of economies of scale

That which would decrease with a fall in the equilibrium price for the product it produces ceteris paribus

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