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3.5.3 WAGE DETERMINATION, image, image, image, image - Coggle Diagram

- - - - -Employment is reduced
      - -Wage rate is reduced
      - -Wage rate is less than MRP.
- - - - ARGUMENTS FOR:
      - -Can help to reduce poverty as it mainly impacts the lowest wages and ensures people have enough to live on
      - -Could cause a more content workforce which makes them more productive.
      - -Prevents 'unemployment trap' when benefits are higher than the wage people would have got.
    - - ARGUMENTS AGAINST:
        
        -Loss of jobs in the industry (unemployment)
        
        -Raise costs for businesses which could reduce supernormal costs in the long run
        
        -No consideration on regional differences