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Economic theories and minimum wages

23115 - Economics For Business

7 Pages Essays / Projects Year: Pre-2018

The purpose of this report is to examine how the minimum wage issue relates to theoretical knowledge as well as to outline some relevant stakeholders who support and oppose this decision. The economic theories are drawn and discussed in this case are: government intervention, price control, supply and demand, unemployment, free market, and inflation. However, increasing the minimum wage brings not only positive effects as mentioned, but there are also some potential negative impacts. This report presents some alternative actions to cope with this issue as well.


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