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3.2 million low income workers across malaysia are expected to benefit from the countrys first minimum wage, which the government will transform Malaysia into a high income nation. Employer groups say that paying the minimum wage,which is not based on productivity or performance, would raise their costs and reduce business profits.
a. On a graph of the market for low skilled labor, show the effect of the minimum wage on the quanitity of labor employed.
b. Explain the effects of the minimum wage on the workers surplus, the firms surplus and the efficiency of the market for low skilled workers.
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q1. expectations and consumer confidence are important in determining fluctuations in aggregate spending. in your
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