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Economics (AS & A Level) · May / June 2025 · Paper 34 · Question 11

9708Labour market forces and government intervention

What determines the amount by which employment is reduced if a minimum wage is set 5% above the equilibrium market wage?

  1. Athe average revenue product curve
  2. Bthe marginal revenue product curve
  3. Cthe mobility of labour
  4. Dthe wage rate in other industries

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Correct answer: B. the marginal revenue product curve

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