Microeconomic decision makers Flashcards
Commercial banks
banks which aim to make a profit by providing a range of banking services to households and firms
Central bank
a government-owned bank which provides banking services to the government and commercial banks and operates monetary policy
National minimum wage (NMW)
a minimum rate of wage for an hour’s work, fixed by the government for the whole economy
Specialization
the concentration on particular products or tasks
Division of labor
workers specializing in particular tasks
Trade union
an association which represents the interests of a group of workers
Collective bargaining
representatives of workers negotiating with employers’ associations
Industrial action
when workers disrupt production to put pressure on employers to agree to their demands
Horizontal merger
the merger of firms producing the same product and at the same stage of production
Vertical merger
the merger of firms producing the same product, but at a different stage of production
Profit satisficing
sacrificing some profit to achieve some goals
Profit maximization
making as much profit as possible
