The supermarkets along with a number of dairy firms have agreed to pay fines

The supermarkets along with a number of dairy firms

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The supermarkets, along with a number of dairy firms, have agreed to pay fines totalling some £116m after an Office of Fair Trading (OFT) probe. Cases against Tesco and Morrisons will continue after no deal was struck. The OFT said that in-store prices went up after the collusion, but the amount received by farmers did not increase. However, the firms insist that the farm gate price paid for milk did rise and that they were not ripping off customers. The OFT said the collusion saw customers being charged 3 pence extra for a pint of milk, 15p extra per quarter-pound of butter and 15p per half-pound of cheese, the watchdog said. Source: BBC Questions1 Examine the impact of this collusion on i.the consumers. ii. the farmers [4] 2 Do you think the government should intervene to prevent collusion between firms? [6] 3 Apart from the example given above, identify two other restrictive practices adopted by firms. [4] 4 Discuss the advantages and disadvantages of a competitive market. [6]
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[ ECONOMICS DATA RESPONSE QUESTIONS ] This Worksheet has been downloaded from . Revision notes, crosswords, quizzes, flash games for IGCSE, A Level, IB Diploma Business Studies, Economics and Accounting. Check out Business studies and economics blog for latest info. © G ROWTH IN THE US ECONOMY IMPROVES US economic growth accelerated in the last three months of 2010 to an annualised rate of 3.2%, corresponding to a 0.78% quarterly increase. This compares with an annual GDP rate of 2.6% from the Commerce Department in the previous quarter. A rise in consumer spending contributed to the growth, as did falling imports. The Labor Department said that wages and benefits rose 2% in 2010, which is faster than 2009, but still the second slowest rate since records began. The Labor Department has been collecting the figures for 28 years. The fourth-quarter GDP figure is a first estimate, and could be revised either up or down in the coming months. The US economy grew by 2.9% in the whole of 2010, which is the strongest year of growth since 2005. The 4.4% rise in consumer spending had a particularly strong effect because such spending accounts for more than two thirds of US economic activity. "Unfortunately we still need to see much stronger growth to begin to really make a dent in the unemployment rate ," said Ryan Sweet at Moody's Analytics in West Chester, Pennsylvania. Source: BBC.co.uk Questions 1 Define the following terms indicated in bold in the text: a) GDP b) Unemployment rate [2] [2] 2 Explain what is meant by ‘US economic growth’. [3] 3 With reference to the article and your knowledge discuss the factors that might lead to a growth in GDP. [8] 4 GDP is an indicator of living standards in a country. Discuss how useful this is in comparing the living standards between two countries. [7] Total: 22
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[ ECONOMICS DATA RESPONSE QUESTIONS ] This Worksheet has been downloaded from . Revision notes, crosswords, quizzes, flash games for IGCSE, A Level, IB Diploma Business Studies, Economics and Accounting. Check out Business studies and economics blog for latest info.
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