Micro 6.6

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What is a trade union?
An organisation of workers who set up to further the interests of their membership through a process of bargaining collectively with employers.
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What do trade unions give workers?
Power to set wages higher than they would otherwise be.
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What does economic theory suggest about trade unions?
The introduction of a trade union to a perfectly competitive labour market will increase wages for those who keep their job, but reduce employment levels.
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How do trade unions increase supply?
Employees are able to negotiate a higher wage, so more people are willing to supply their labour at this wage.
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What has bargaining between trade unions and employees led to?
Pay rises for workers in return for agreement to adopt more productive working methods, such as agreeing to retrain employees.
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Other cards in this set

Card 2

Front

What do trade unions give workers?

Back

Power to set wages higher than they would otherwise be.

Card 3

Front

What does economic theory suggest about trade unions?

Back

Preview of the front of card 3

Card 4

Front

How do trade unions increase supply?

Back

Preview of the front of card 4

Card 5

Front

What has bargaining between trade unions and employees led to?

Back

Preview of the front of card 5

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