1) Four different actions trade unions can take to enforce their demands are:
• Strikes: Workers collectively refuse to work.
• Picketing: Union members demonstrate outside the workplace to deter others from working or doing business with the employer.
• Work-to-rule: Employees strictly adhere to their job descriptions and rules, slowing down productivity.
• Overtime ban: Workers refuse to work any hours beyond their standard contracted hours.
2) Four economic factors which may increase the bargaining strength of a trade union are:
• High demand for the firm's product: If the firm's product is in high demand, it is more likely to concede to union demands to avoid disruption to production.
• Low elasticity of demand for the firm's product: If consumers have few substitutes for the firm's product, a strike will have a greater impact on the firm's revenue, increasing union leverage.
• Low unemployment rate: In a tight labor market, it is harder for firms to replace striking workers, strengthening the union's position.
• High profitability of the firm: A highly profitable firm has more capacity to meet wage demands without significantly impacting its financial stability.
3) Four ways by which a union may restrict the supply of labour are:
• Imposing strict entry requirements: Requiring specific qualifications, training, or apprenticeships to join a profession.
• Limiting union membership: Restricting the number of new members allowed into the union, especially in industries with closed shop agreements (where only union members can be hired).
• Advocating for shorter working hours: Reducing the total hours worked by the existing labor force.
• Demanding higher minimum wages: While primarily a wage demand, if successful, it can price some workers out of the market, effectively reducing the supply of labor demanded at that wage.
4) Two methods of wage determination are:
• Collective bargaining: Wages are determined through negotiations between trade unions (representing workers) and employers or employer associations.
• Individual bargaining: Wages are determined through negotiations between an individual worker and an employer, often based on skills, experience, and market conditions.
5) One imperfection in a labour market is:
• Imperfect information: Workers may not have complete information about all available job opportunities or prevailing wage rates, and employers may not have complete information about the skills and productivity of all potential employees.