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Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 4

9708Economic methodology

Which statement is normative?

  1. AA minimum wage is the correct government policy to increase the incomes of the lowest paid workers.
  2. BA minimum wage is the lowest amount that employers can legally pay their workers.
  3. CIn Pakistan, a minimum wage of 15000 Pakistani rupees per month was set on 1 June 2016.
  4. DSetting the minimum wage rate above the equilibrium will result in an excess supply of workers.

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Correct answer: A. A minimum wage is the correct government policy to increase the incomes of the lowest paid workers.

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