on January 1, 2019, South Africa's first-ever national minimum wage came into effect. The legislation stipulated a minimum national rate of R20 per hour, or R3500 per month, depending on the number of hours worked. Some economists warned that it may depress SA's already high unemployment rate further by making it more expensive to hire workers. Using your knowledge of basic economic theory, illustrate and explain with the aid of a graph why some economists might have given such a warning?

on January 1, 2019, South Africa's first-ever national minimum wage came into effect. The legislation stipulated a minimum national rate of R20 per hour, or R3500 per month, depending on the number of hours worked. Some economists warned that it may depress SA's already high unemployment rate further by making it more expensive to hire workers. Using your knowledge of basic economic theory, illustrate and explain with the aid of a graph why some economists might have given such a warning?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 25RQ: Would you expect the natural rate of unemployment to remain the same within one country over the...

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On January 1st 2019, South Africans first-ever national minimum wage came into effect.the legislation stipulated a minimum wage rate of R20 per hour or R3500 per month depending on the number of hours worked. However some economists warned that it may depress S. A's already high unemployment rate further by making it more expensive to hire workers. 1.Using your knowledge of basic economic theory, illustrate and explain with the aid of a graph, why some economists might have given such a warning? 2.what are common arguments offered for and against the minimum wages? 3. Have they been correct so far in the prediction that a national wage will depress S. A's already high unemployment rate? Explain
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