"The national minimum wage is increased by 50 cent, bringing it to €9.15 in a bid to make work pay."
(Source: Irish Independent, October 2015)
Outline three possible economic impacts of this measure on the Irish economy. - Leaving Cert Economics - Question 9 - 2016
Question 9
"The national minimum wage is increased by 50 cent, bringing it to €9.15 in a bid to make work pay."
(Source: Irish Independent, October 2015)
Outline three poss... show full transcript
Worked Solution & Example Answer:"The national minimum wage is increased by 50 cent, bringing it to €9.15 in a bid to make work pay."
(Source: Irish Independent, October 2015)
Outline three possible economic impacts of this measure on the Irish economy. - Leaving Cert Economics - Question 9 - 2016
Step 1
Possible positive economic impact (i)
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Answer
One potential positive economic impact of raising the minimum wage is an increase in the standard of living for low-income families. With a higher minimum wage, families can afford more goods and services, which can boost local economies.
Step 2
Possible positive economic impact (ii)
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Answer
Another positive effect is that it improves incentives to work. Ensuring that work pays can encourage more individuals to enter the labor market and can reduce the likelihood of voluntary unemployment.
Step 3
Possible positive economic impact (iii)
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Answer
A third positive impact is that increased wages can lead to greater aggregate demand in the economy. As workers have more disposable income, spending on goods and services may increase, fostering economic growth.
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