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Problem:

Assume in country Triniland employers are needed to pay overtime at 50% above the normal wage rate for workers who work beyond eight hours a day.

Required:

Use your diagrams in (a) and (b) to examine and demonstrate graphically the change in work incentive facing workers who were working overtime (more than eight hours) before this new law. You might use the same graph as in (a) and (b).

(Note you should tell me what occurs to work and leisure hours after law change).

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910561

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