Maximum wages Flashcards

(3 cards)

1
Q

What is a maximum wage

A

A price ceiling of how much people can earn in a specific period of time

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2
Q

What are the 4 main advantages of a maximum wage

A
  • reduces wage inequalities
  • reduces costs for firms
  • may encourage workers to enter a wider range of professions
  • labour may bargain up wages so this would be counterbalanced
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3
Q
A
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