This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
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Step 1: Answer Question 13. Trade unions are organizations formed by workers to protect and promote their interests. Two functions of trade unions are: • To bargain collectively with employers over wages, working conditions, and benefits. • To protect workers' rights and ensure fair treatment in the workplace. Step 2: Answer Question 14, Part 1: Differentiate Money wages and Real wages. Money wages (or nominal wages) refer to the amount of money a worker receives for their labor. It is the actual monetary payment. Real wages refer to the purchasing power of money wages, meaning the amount of goods and services that can be bought with the money received. Real wages are calculated by adjusting money wages for inflation. Step 3: Answer Question 14, Part 2: Differentiate Creeping inflation and Hyperinflation. Creeping inflation is a mild and predictable form of inflation, typically characterized by a slow and steady rise in prices, usually in the low single digits (e.g., 1-3% per year). It is often considered beneficial for economic growth. Hyperinflation is an extremely rapid and out-of-control increase in the general price level, often exceeding 50% per month. It severely erodes the value of currency and can lead to economic collapse. Step 4: Answer Question 14, Part 3: Differentiate Capital market and Money market. The capital market deals with long-term funds, typically for investments lasting more than one year. It involves instruments like stocks and bonds, and facilitates long-term financing for businesses and governments. The money market deals with short-term borrowing and lending, typically for periods of less than one year. It involves highly liquid, short-term instruments such as treasury bills, commercial papers, and certificates of deposit, used for managing short-term liquidity needs.