Govt Intervention - Protecting suppliers and Employees

Question 1

Different methods Govt intervention to protect workers

Answer 1

-Health & safety laws
-Employee contracts
-Redundancy processes
-Maximum hours at work
-The right to be in a trade union

Question 2

What are some ways the govt can restrict monopsony power

Answer 2

-Minimum prices for suppliers
-Anti-monopsony laws
-Hire an independent regulator who ensures monopsonists buy fairly
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Question 3

What is nationalisation

Answer 3

The transfer of ownership of a privately-owned enterprise into the public sector

Question 4

Benefits and Drawbacks of nationalisation

Answer 4

Benefits:
-public interest
-social equality
-increase in allocative efficiency
-job security
-service quality

Drawbacks:
-Inefficiency (dynamic, X, productive)
-Lack of innovation
-Misallocation of resources