Trade Unions

• Government intervention can correct market failures through regulation, subsidies, taxes, and nationalization/privatisation.
• Market failure occurs when there are externalities or public goods that cannot be provided by the private sector alone.
• Negative externalities harm others but do not result in additional costs to the producer.
• Positive externalities benefit others but do not result in additional payment to the producer.
• Positive externalities occur when there is a benefit to society as a whole but no compensation to the producer.
• Externalities occur when an action taken by one party affects another without their consent.
• Market failure occurs when the free market fails to allocate resources efficiently due to externalities or public goods.
• Positive externalities benefit others without resulting in extra revenue for the firm.
• Public goods have non-rival consumption and non-excludability.
• The government may intervene in markets with negative externalities through pollution charges (Pigouvian tax) or subsidies for cleaner production methods.
• Public goods have non-rivalry (can be used without reducing availability) and non-excludability (cannot exclude people from using them).
• The government may intervene in markets with negative externalities through Pigouvian taxation or subsidy schemes.
• Externalities can lead to underproduction (negative) or overconsumption (positive).
• The government may intervene in markets with negative externalities such as pollution to prevent damage to health and property values.
• Pollution is an example of a negative externality where producers do not pay the full cost of their actions on society.
• Pollution is a negative externality whereby producers pollute the environment at little cost to themselves but cause significant harm to others.
• Trade Unions are organisations that represent workers and help them to negotiate better pay and conditions.
• A trade union is an organisation that represents workers' interests, including wages, working hours, job security, and safety.
• Unemployment occurs when there is a mismatch between supply and demand in labour markets.
• Unions have been successful in improving wages and working conditions through collective bargaining.
• Collective bargaining involves unions representing groups of workers in negotiations with employers about pay and conditions.
• Inflation occurs when there is too much money chasing too few goods, leading to rising prices.
• Government intervention can be used to address market failures by regulating industries or providing subsidies.
• The minimum wage is the lowest amount employers can legally pay their employees per hour.
• Market failure refers to situations where free-market forces fail to allocate resources efficiently due to factors like monopoly power, public goods provision, and externalities.
• Wages are determined by the interaction of supply and demand in labour markets.
• The minimum wage is the lowest amount per hour that can be paid by law.
• The government can use monetary policy (changing interest rates) or fiscal policy (taxes and spending) to control inflation.
• Minimum Wage - The legal minimum rate of pay set by government
• Market failure refers to situations where the free market does not allocate resources efficiently due to externalities, public goods, monopoly power, or information asymmetry.
• Labour laws protect workers from exploitation and ensure fair treatment in the workplace.
• Externalities occur when the costs or benefits of production or consumption are borne by third parties who did not choose to participate in the activity.
• Trade unions are organizations that represent workers' interests and negotiate on behalf of members regarding employment terms and conditions.
• Public goods are non-rivalrous (can be consumed simultaneously) and non-excludable (cannot exclude people from consuming them).
• Public goods are non-rivalrous (can be consumed without reducing availability) and non-excludable (cannot exclude people from consuming them).
• Labour markets involve buyers (employers) and sellers (workers).
• Strikes occur when workers refuse to work until their demands are met, often resulting in lost productivity and income for both parties involved.
• Supply of labour depends on factors such as population size, education level, and unemployment benefits.
• Externalities occur when an action taken by one party affects another party who did not participate in that decision.
• A cartel is a group of firms acting together to control production levels and pricing decisions.