Understanding Economic Concepts

During a school assembly, Shafaanaa asked, what is the main role of trade unions?

• Negotiate salaries for employers.

• Enforce government labor laws.

• Advocate for workers' rights and interests.

• Provide financial support to companies.

Aaid and Nihaa are discussing how trade unions affect workers' wages. They wonder about the impact of these unions on the earnings of employees in their local factory.

• Trade unions have no effect on wage levels for workers.

• Trade unions decrease wage levels by imposing fees on workers.

• Trade unions only benefit management and not the workers.

• Trade unions generally increase wage levels for workers through collective bargaining.

Aini and Maaish are discussing how market competition influences consumer prices. They wonder about the effects of competition on the prices of goods they buy.

• Increased competition raises consumer prices.

• No effect on consumer prices.

• Generally lowers consumer prices.

• Leads to higher prices for consumers.

Nausha runs a small bakery. What is the formula for calculating profit from her sales?

• Profit = Total Revenue - Total Costs

• Profit = Total Revenue / Total Costs

• Profit = Total Revenue + Total Costs

• Profit = Total Costs - Total Revenue

Ameera is running a small bakery. How do fixed and variable costs differ in her business?

• Fixed costs are constant regardless of output, while variable costs change with production levels.

• Fixed costs vary with production levels, while variable costs remain constant.

• Both fixed and variable costs change with the number of employees.

• Fixed costs are incurred only during peak production times.

Nausha and Shizaan are discussing the main effects of globalisation on local economies. What do they conclude?

• Globalisation leads to increased trade, job creation, economic growth, cultural exchange, and competition, impacting local businesses and employment.

• Globalisation benefits large corporations without affecting local businesses.

• Globalisation has no impact on local economies.

• Globalisation reduces trade and limits job opportunities.

How does globalisation affect job opportunities in developing countries, as seen in the experiences of Aini and Dhaain?

• Globalisation eliminates job opportunities in developing countries.

• Globalisation can increase job opportunities in developing countries through foreign investment and market access, but may also lead to job losses in traditional sectors.

• Globalisation has no impact on job opportunities.

• Globalisation only benefits developed countries.

What role does migration play in labor markets?

• No impact on economic growth.

• Decreases skill diversity.

• Increases labor supply and drives economic growth.

• Decreases job opportunities for locals.

How does migration affect wage levels in host countries?

• No effect on wage levels.

• Can lower wages for low-skilled jobs but may increase wages in skill shortage sectors.

• All migrants earn more than locals.

• Only domestic policies affect wages.

What is the government's role in regulating firms and ensuring fair competition in the context of Nausha's startup?

• No role in regulating firms.

• Promotes monopolies for efficiency.

• Only intervenes in bankruptcy cases.

• Ensures fair competition through antitrust laws and oversight of mergers.