Economics · May / June 2024 · Paper 11 · Question 24

The introduction of a minimum hourly wage in an industry aims to reduce poverty among low-paid workers. What is an advantage to workers of an effective national minimum wage?

1. AAll workers get paid according to their level of productivity.
2. BFirms may look to increase capital equipment rather than labour.
3. CLevels of employment become more dependent on wage differences.
4. DRedistribution of a firm's income rewards labour rather than owners.

As printed in the paper