Day: June 20, 2021

The government introduces a minimum wage above the equilibrium market wage rate.

How will this affect low-paid workers according to marginal revenue product (MRP) theory?

Select ONE answer:

1. All those initially in employment will receive the new guaranteed minimum wage.
2. Fewer of those not already in employment will enter the labour force.
3. There will be an increase in the number of low-paid workers in employment.
4. Some low-paid workers will lose their job.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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