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Economics REVISION 5 (micro) > Government Intervention > Flashcards

Flashcards in Government Intervention Deck (10)
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1
Q

What are the aims of competition policy

A

Promote competition, make markets work better and contribute towards improved economic efficiency

2
Q

What does competition policy aim to ensure

A

Technological innovation
Effective price competition between suppliers
Safeguard and promote the interests of consumers

3
Q

How does competition policy aim to safeguard and promote the interests of consumers

A

More house and lower prices

4
Q

What are the 4 main pillars of UK competition policy

A
  • anti-trust & cartels
  • market liberalisation
  • state aid control
  • merger control
5
Q

The 4 main pillars of U.K. competition policy: anti-trust & cartels

A

Elimination of agreements that restrict competition including price-fixing by firms who hold a dominant market competition

6
Q

The 4 main pillars of U.K. competition policy: market liberalisation

A

Introducing competition in previously monopolistic sectors such as energy supply, retail banking, postal serves etc.

7
Q

The 4 main pillars of U.K. competition policy: state aid control

A

Policy analyses state aid measures such as airline subsidies to ensure that such measures do not distort competition in the single market

8
Q

The 4 main pillars of U.K. competition policy: merger control

A

Investigation of mergers and take-overs between firms which could result in their dominating the market

9
Q

Examples of anti-competitive behaviour

A
Price fixing and market sharing
Predatory/limit pricing 
Patent misuse
Refuse to deal
Discrimination
10
Q

Power of the Competition And Markets Authority (CMA)

A

Can block acquisition

Power to giver a Mather the go-ahead