Economics (AS & A Level) · Oct / Nov 2025 · Paper 34 · Question 11
9708Addressing income and wealth inequality
A government introduces a national minimum wage. What is not a benefit of this to 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.
As printed in the paper
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Correct answer: D. It reduces structural unemployment.
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