Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

A government wants to lower real wage rates. Which policy should it adopt to do this?

  • AAward public sector workers pay increases below the rate of inflation.
  • BEncourage private sector pay awards to be in line with company profits.
  • CIntroduce a minimum hourly wage for non-unionised, low-paid workers.
  • DRemove any restrictions on trade unions to bargain for wages.

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