ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The minimum price firms are willing to pay for labor
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The minimum price unskilled workers are willing to supply their labor for
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The minimum price of labor set by governments in the labor market
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The minimum price of labor set by governments in the resource market
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Detailed explanation-1: -Minimum wages have been defined as the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.
Detailed explanation-2: -THE MINIMUM WAGES ACT, 1948 ACT NO. 11 OF 1948 1* [15th March, 1948.] An Act to provide for fixing minimum rates of wages in certain employments. WHEREAS it is expedient to provide for fixing minimum rates of.
Detailed explanation-3: -Delhi’s minimum wage: 2022 rates The Delhi government has announced that effective from October 1, 2022, the wages of unskilled workers will be increased from INR 16, 506 to INR 16, 792, semi-skilled workers from INR 18, 187 to INR 18, 499, and skilled workers from INR 20, 019 to INR 20, 357.
Detailed explanation-4: -India introduced the Minimum Wages Act in 1948, giving both the Central government and State government jurisdiction in fixing wages. The act is legally non-binding, but statutory. Payment of wages below the minimum wage rate amounts to forced labour.
Detailed explanation-5: -In a competitive labor market model, a minimum wage set above equilibrium causes a decrease in firms’ labor demand and displaces some workers from their jobs, thereby generating unemployment.