problem 1a suppose the government decides to

Question

Problem 1:

(a) Suppose the government decides to implement a minimum wage to help low-income workers. How will the minimum wage affect the demand for labor and what does this imply about the success of the government's initiative?

(b) Explain the effects of a minimum wage on monopsonised markets.

Problem 2:

Briefly write on the following (each carries equal marks):

(a) General and Specific Training

(b) Determinants of Migration

(c) Causes of Fringe Benefit Growth