Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

A government brings in a national minimum wage. Which of the following is not an advantage of this for the economy?

  • AIt boosts the morale of workers and enhances labour productivity.
  • BIt raises incomes of poorer workers.
  • CIt reduces government spending on welfare payments.
  • DIt reduces structural unemployment.

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