Governemt Intervention

Question 1

Government intervention

Answer 1

Where the gov. becomes involved in a situation in order to help deal with a problem

Question 2

Anti-competitive practices

Answer 2

Attempts made by firms to prevent or restrict competition

Question 3

Subsidiaries

Answer 3

Companies that are at least half owned by another company

Question 4

Fit for purpose

Answer 4

Useable (by a consumer) for the purpose for which it was intended

Question 5

Government regulation of competition

Answer 5

• Promote competition - encourage growth of small firms, low barriers to entry, introduce anti competition legislation
• Limit monopoly power
• Protect consumer interest
• Control mergers and take overs

Question 6

Minimum wage

Answer 6

Minimum amount per hour which most workers are legally entitled to be paid

Question 7

Reasons for minimum wage

Answer 7

• Raise income for low paid workers
• Help close the gap between the rich and poor (reduce inequality)
• Save government money
• Motivate workers
• Make workers more productive