1.2 Business Economics : Unit 22 - 24 Flashcards
(33 cards)
1
Q
- What is value added?
A
- products or service have an increased values because work has been done on them
2
Q
- What is wage rate?
A
- the amount of money paid to workers for their services over a period of time.(that is price of labour)
3
Q
- What is derived demand?
A
demand that arises because there is demand for another good.
4
Q
- What are the 5 factors affecting demand of labour?
A
Availability of substitutes.
Demand for the product.
Productivity of labor
Other employment costs
5
Q
- What are the 8 factors affecting the supply of labour?
A
-Population size.
- migration.
- age distribution of the population.
- retirement age.
- school leaving age.
- female participation.
- skills and qualification.
- labor mobility.
6
Q
- What is labor mobility?
A
-ease with which workers can move geographically and occupationally between different jobs.
7
Q
- What are the 3 importance of quantity and quality of labor?
A
- labor available meets the skills required to maintain quality standards.
- High quality work.
- Less training costs.
8
Q
- What is the importance of education and training on the quality of human capital?
A
- Increase in productivity.
- reduction in costs.
- increase in the quality of labor.
9
Q
- What is boom?
A
- time when the business activity increase rapidly, so that demand for goods increases, prices and wages go up, and unemployment fails.
10
Q
10, What is boom and bust?
A
when an economy regularly becomes more active and successful then suddenly fails.
11
Q
- What are trade unions?
A
trade unions are organizations that exist to protect the interests of workers.
12
Q
- What are the 4 main aims of trade unions ?
A
- Negotiate pay and working conditions with employers.
- Provide legal protection for members such as representation in court if an employee is fighting a case against an employer.
- Put pressure on the government to pass legislation that improves the rights of workers.
- provide financial benefits such as strike pay when away necessary.
13
Q
- What are the laws imposed by the government on trade unions to limit their power? (4)
A
- required trade unions to have a secret ballot before a strike.
- allowed businesses to sue for compensation if trade unions did not obey the law
- banned second picketing.
- made close shops illegal.
14
Q
- What are the 2 advantages of trade unions to workers?
A
-negotiate better pay.
-negotiate better working conditions,
15
Q
- What are the 2 disadvantages of trade unions to workers?
A
- less autonomy,
- workplace tension,
- slower advancement.
16
Q
- What is closed shops?
A
- company or factory where all the workers must belong to a particular trade union.
17
Q
- What is second picketing?
A
- workers in one workplace or company strike in a group at a particular location in order to support the striking workers in a different workplace or company.
18
Q
- What do you mean by anti-competitive practices?
A
(or restrictive trade practices) attempts by firms to prevent or restrict competition.
19
Q
- What are 4 ways government regulate competition?
A
- Promoting competition.
-Limit monopoly power. - Protect consumer interests.
- Control mergers and takeovers.
20
Q
- How do governments promote competition? (3)
A
- Encourage the growth of small firms.
- Lower barriers to entry.
- Introduce anti- competitive legislation.
21
Q
- What are the fit for purpose?
A
- usable(by a consumer) for the purpose for which it was intended.
22
Q
- What are subsidiaries?
A
- companies that are at least half-owned by another company.
23
Q
- What is minimum wage?
A
minimum amount which most workers are legally entitled to be paid.
24
Q
- What are the four reasons for minimum wage?
A
- benefit disadvantages workers.
- to avoid claim welfare
- Incomes rise, workers may pay more tax.
- motivate any workers.
25
25. One way in which governments intervene in the labor market?
- legislation, by setting a minimum wage.
26
26. What are the impact of an increase of minimum wages on employment?
- Might result in unemployment.
27
27. Why do minimum wages cause job losses?
this is because businesses may be unable to pay every existing employee the minimum wage amount.
28
28. How to avoid the loss of jobs due to minimum wage?(3)
- if labor productivity rises at the same time.
- if employers are able to pass on wage increases to customers in the form of price rises.
- if profit margins are reduced.(employers meet the cost of the wage increase)
29
29. What is government intervention?
where the government becomes involved in a situation in order to help deal with a problem.
30
30. What are the 3 needs for government intervention?
- promoting competition.
- protecting consumer interests.
- Limit monopoly power.
31
31. What are the 3 ways of promoting competition?
- encourage the growth of small firms.
- lower barriers to entry.
- Introduce anti-competitive legislation.
32
32. What are the 4 reasons of regulating competition by intervention of the government?
- promoting competition.
- Limit monopoly power.
- Protect consumer interests.
- control mergers and takeovers.
33
33. What are the 4ways businesses may try to exploit their customers?
- increasing prices to higher levels than they would be in competitive market.
- price fixing,
- restricting consumer choice by market sharing.
- raising barriers to entry by spending huge amounts on advertising
