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local areas; the concept of 'public interest' was clarified by relating it to 'competition'. The Competition Act 1980 transferred the investigation of prices to the Director-General of Fair Trading and gave the latter the task of investigating ANTICOMPETITIVE PRACfiCES; under the Act, various public bodies, e.g. bus and water authorities, could be referred to the Monopolies and Mergers Commission for a consideration of their efficiency and costs, the service provided and possible abuse of a monopoly situation. The 1984 Act consolidated the legislation. The Competition Act 1998 introduced new rules to prohibit agreements, business practices and conduct that would damage competition with fines up to 10 per cent of a business's turnover.<br /> The EUROPEAN ECONOMIC COMMUNITY from its inception regarded the promotion of competition as a major policy goal. The TREATY OF ROME in Articles 3, 7, 37 and 8594 deals with many aspects of the promotion of competition. State monopolies, restrictive agreements, abuses of dominant positions in markets, the control of public enterprises by national governments and state aid to industries by national governments are all covered by the policy.<br /> In the USA, since 1890 the federal government has pursued an active competition policy, known as ANTITRUST.<br /> <br /><em>Reference</em><br />Cini, M. and McGowan, L. (1998) Competition Policy in the European Union. New York: StMartin's Press.<br /> Wilks, S. (1999) In the public interest: Competition Policy and the Monopolies and Mergers Commission, Manchester: Manchester University Press.
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minimum wage (J3)<br />The minimum rate of employee remuneration fixed by a government for an hour's work in a particular industry, region or whole economy. Many countries, including France and Australia, have long used this policy response to the problem of ww PAY. Minimum wage legislation was passed in the UK in 1998. It is often argued that the imposition of a new minimum wage, or an increase in existing levels, will have an unemployment effect and will fuel inflation by increasing the entire WAGE coNTouR; in the figure, setting a minimum wage Wrn above the equilibrium wage w;, reduces employment by Qe - Qm. There are many countries where this has happened but detailed labour market analysis, especially where MONOPSONY is present, is needed before such policies are wholly abandoned. & D s
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