Trade Unions
What is the primary goal of a trade union?
To negotiate for better wages and working conditions.
What is an example of a positive externality?
A subsidy for renewable energy.
What penalty might the government impose for cheating or bribery?
Fines.
What is one way governments promote competition?
By lowering barriers to entry for small firms.
What is the primary form of government intervention in the labor market?
Minimum wage.
What term describes representatives of workers negotiating with employers?
Collective Bargaining.
What type of government intervention is used to address negative externalities?
Taxes.
What do pollution permits represent?
The optimal amount of pollution the environment can absorb without significant harm.
Why might a government limit monopoly power?
To prevent the exploitation of consumers.
How does a minimum wage benefit disadvantaged workers?
It provides financial support for low-income families.
Name one way trade unions protect workers besides negotiating wages.
1) They protect workers' rights and jobs.
2) Unions offer legal support to workers in case of disputes with employers or unfair treatment.
3) Unions negotiate for health insurance, pensions, paid leave, and other employee benefits.
How does a government influence the production or consumption of goods with externalities?
By using taxation for negative externalities or subsidies for positive externalities.
What is the purpose of regulations in the market?
To prevent consumer exploitation, account for externalities, and reduce consumption of harmful goods.
How can a government ensure fair competition in markets?
By restricting anti-competitive practices or behavior.
How does a minimum wage impact the government financially?
It reduces the need for government benefits for low-income individuals.
How do trade unions influence government policies?
By pressuring the government to set a minimum wage.
What is the term for a benefit that affects a third party due to a transaction?
External benefit.
What are two examples of government permits related to market regulation?
Pollution permits and business operating permits.
What is the government's role in regulating mergers or takeovers?
To ensure they meet conditions that protect market fairness and consumer interests.
How can a minimum wage motivate workers?
By encouraging them to be more productive.
Draw the diagram for trade union impact on wages and employment in the labor market.
OR
Explain how trade unions can impact employer-employee relationships
(Diagram from PPT)
OR
They can create a structured dialogue for addressing grievances and fostering cooperation.
Why might a government tax cigarettes?
To raise their price and reduce consumption because they create negative externalities.
How do governments determine the amount of pollution allowed by permits?
By calculating the environment's capacity to absorb pollution without disrupting markets or causing harm.
Why might a government provide subsidies to small firms?
To promote competition and balance market dynamics.
Why might employers increase productivity in response to a minimum wage?
To justify the higher pay and maintain profitability.