Answer to Question #110151 in Macroeconomics for Nomathemba

Question #110151

Welfare effects when wage rate set below equilibrium

Expert's answer

If the minimum wage is set below the equilibrium wage rate, it has no effect. The market works as if there were no minimum wage.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. True/False . Why? Suppose the country of Macecon produces only two final goods, Theorems (Ts) and
2. In a large economy such as ours, it is impossible to simply count how many times each dollar changes
3. Assuming that South Africa economy experience a high level of inflation. The SARB makes use of monet
4. Assuming that the government decides to address the low level of production and employment caused by
5. Assuming that South Africa economy is over heated (a period of very high level of inflation and prod
6. Assuming that South Africa economy experience a severe recession due to COVID-19. The SARB makes use
7. If a R200 billion increases in investment spending creates R200 billion of new income in the first r