Government Intervention Flashcards
What is competitive tendering
introducing competition among private sector firms which put in bids for work that has been contracted out by the public sector
What is contracting out
Getting private sector firms to produce goods and services which are then provided by the state for its citizens
What is deadweight welfare loss
the overall loss in welfare which arises after a tariff is imposed
What is deregulation
the process of removing government controls from markets
What is nationalization
The transfer of firms or assets from private sector ownership to state ownership; it is the opposite of privatization
What is privatization
The transfer of organizations or assets from state ownership to private sector ownership
What is regulatory capture
occurs when firms in an industry are able to influence to their advantage a regulatory body which is supposed to be regulating their behavior
What is discrimination
occurs when the labor market when there is an information failure leading employers to appreciate one group in society and deliberately undervalue another group
What is maximum wage
a legal maximum wage rate per hour or total pay; employers cannot pay a higher amount than this to their workers
What is minimum wage
a legal minimum wage rate per hour which employers must pay their workers
