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

Long-run costs and economies of scale — practice question

The diagram illustrates the percentages of people on low pay and on extremely low pay in a country between 1976 and 2012. A national minimum wage was introduced in 1999. Which conclusion agrees with the diagram?

  • AThe minimum wage helped the low paid more than the extremely low paid.
  • BThe minimum wage reduced the numbers of both low paid and extremely low paid.
  • CThe minimum wage reversed the trend in low pay of the previous 20 years.
  • DThe minimum wage was responsible for the largest reduction of low pay in the period.

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