Definitions Trade Unions: An organization of workers that have banded together to achieve common goals, promote and protect the interests of their member. Collective bargaining: a process of negotiations between employers and a group of employees aimed at...
Government Regulation These are used to: Promote competition. Resolve externalities where market failure exists: Provision of public goods. Taxing demerit goods. Enforce law and order. Influence the location of firms: Prevent overcrowding in cities. Prevent...
Oglipoly What is it? An oligopoly exists when there are several dominate firms in one market. If there are only two sellers in one market than that the market structure of the said market is a duopoly which is a special case of an oligopolistic market. Examples...
Production – Productivity & Wealth Creation Definition Productivity: A measure of the efficiency of production. It is the amount of output that can be produced from a given amount of resources Labor productivity: the amount of goods and services that a...
Nationalization Definition: The process of taking an industry or assets into government ownership by a national government or state. It usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
Privatization Definition: The incidence or process of transferring ownership of a business, enterprise, agency, public service property from the public sector (the state or government) to the private sector (businesses that operate for a private profit) or to private...
Demand theory Definitions Demand: The ability and willingness to pay a price to purchase a good/service Quantity demanded: The total amount of goods or services that are demanded at any given point in time. Ceteris Paribus: The relationship between...
Formula PED = % change in Quantity Demanded PED = (New QD – Old QD) x100 % change in Price , (New P – Old P) x 100 Inelastic : The PED value is between 0 and -1. It tends to have few...
Public and Merit Goods In a mixed economy the government exists alongside the free market to provide certain goods and services. These tend to be public goods and merit goods because a free market would either fail to provide them or not provide them in sufficient...
How collective bargaining is organized Definition: the process whereby representatives of the workers (in a particular industry) negotiate say pay settlements - with representatives of the employers (in that industry). Generally, an individual worker is in a...