1. If an increase in wage rates for the low paid leads to their being more motivated,...

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1. If an increase in wage rates for the low paid leads to their being more motivated, how would this affect the marginal revenue product and the demand for such workers? What implications does your answer have for the effect on employment in such cases?

2. If a rise in the minimum wage encourages employers to substitute machines for workers, will this necessarily lead to higher long-term unemployment in (a) that industry and (b) the economy in general?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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