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Economics · Oct / Nov 2021 · Paper 12 · Question 10

2281Workers

The diagrams show the wage rates of cleaners (OWc) and nurses (OWn). What is the result if a national minimum wage of OM is introduced?

  1. Awage rate of cleaners: fall; wage rate of nurses: rise
  2. Bwage rate of cleaners: no change; wage rate of nurses: fall
  3. Cwage rate of cleaners: rise; wage rate of nurses: fall
  4. Dwage rate of cleaners: rise; wage rate of nurses: no change

As printed in the paper

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Correct answer: A. wage rate of cleaners: fall; wage rate of nurses: rise

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