Minimum wage is defined as the minimum amount employer need to pay and this amount is set by the government through legislation. If there is no minimum wage, the keen competition between workers for limited jobs would cause wage to fall until it reach the equilibrium wage, so minimum wage is set to prevent wages from falling and remain in acceptable level. Most labour markets in the developed country is affected by minimum wage, it has a large potential impact towards the economy. Hence, it is important to understand the economics effect of minimum wage to the economy. In demand and supply curve, the intersection point of demand and supply curve is the market equilibrium, where the equilibrium supply is equal to the equilibrium demand.
The main objective of this essay is to offer a clear apercu of the employment effects of minimum wages. It summarises some evidences from findings and research done in the UK and overseas and aim to provide a framework in which these studies on minimum wages can be discussed. The structure of the paper is as follows: an explanation of the effect of the minimum wage in the employment both in a competitive and a monopsony market is followed by a brief discussion and critics of the researches done by David Metcalf(2004) and George Jesus Borjas(2010); and, finally, assess the care home case on minimum wage as presented by Machin and Wilson(2004) Employment effect of a minimum wage in a perfectly competitive labour market. The low wage
The loss ratio (or claims ratio) should always be less than 100 in order for an insurance company to make a profit; this means that premiums earned are sufficient to cover losses incurred on a particular line. The second way that these funds are used is to pay expenses incurred in the selling and providing of insurance protection. Some examples would be loss adjustment expenses, commissions, and other expenses. The underwriting gain or loss can be calculated by subtracting claims and expenses incurred from net premiums written. The combined ratio is a common measure of the overall underwriting profitability.
LP will earn extra profit of $28,500 on this order and production done on low peak seasonal. 2. What assumptions did you make in calculating the incremental cost in Question 1? What additional information would be helpful in making these calculations? Assumptions did we make in this calculating the incremental cost in question 1 is plant overhead, administrative and selling expenses are fixed
• Introduction: Good intention may have both consequences depending on how it guided whether by error or correct decision. The best example is the minimum wage regulation which means to raise the wages to improve living conditions but actually influence many to economy. Minimum wage is the lowest hourly, daily wage of an employee. Many economists have different ideas of an in crease in minimum wage, the matter in the views on disadvantages and advantages being disputed by many advocates. The advantages from higher minimum wage can have a positive effect on the whole economy flows, while the disadvantages have some negative effects on employment rates.
Minimum wage laws force an employer to pay its employees above a mandated level. On one hand, yes, this means that workers have more money in their pockets. It means they can now go out and spend money which will, in turn, stimulate the broader economy, right? Wrong! The higher wages paid by the employer have to be made up somewhere.
Financial Decision Making Essay Explain the theoretical rationale for the NPV approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches. Introduction Net Present Value (NPV) is defined as the different between an investment's market value and its cost. NPV rules states that we will accept the project if it creates a positive NPV, and will reject the project if the NPV < 0. In other words, NPV is a measure of how much value being created today by undertaking investment. Managers need to make investment decisions and calculating NPV can help them to see the likelihood of investment being profitable.
It may not surprise people but, it’s not only teenagers that work at these minimum wage paying jobs, there are also many adults that are trying to make a living and are forced to work minimum wage jobs. I am sure they would appreciate a raise, but I believe leaving the minimum wage where its at just forces adults who have little to no skills or education, to go back to school to get the knowledge they need for a career in order to have a more comfortable future. When the minimum wage is raised, businesses have to raise the price on whatever products or services they offer, to offset the loss of profits from having to pay the employees more money. With products more expensive, consumers
As a result, today there are minimum wage laws in the legislation of over 90% of all countries. Although, despite this high adoption rate, there is still much debate on whether the minimum wage law is effective in bringing the poor out of poverty, which was it’s original purpose. The premise behind minimum wage legislation issued by government is that by doing so, they are able to increase the earning power of all marginal workers. Embedded in this notion is the assumption that a business’ main goal is to generate the most profit possible, so no business owner will never voluntarily increase the pay of their workers. In order to counter this, government issues a minimum amount in which a business is allowed to pay their employees.
Computed by deducting the cost of capital from the after-tax profit, it is said to be the best measure of the true profitability of an enterprise because it is tied to cash flow and not earnings per share. Many analysts would agree that EVA is more positively associated with a company’s stock price than ROE or EPS. Keith confirmed his findings with an industry analyst, which posed him with the decision of whether of not to implement this calculation into OSI accounting practices. Furthermore, would it be a beneficial tool to be used for evaluating the new manager’s incentive compensation plans? The EVA trend seems to be almost mandatory for the larger companies, but there is no reason that it shouldn’t work just as well for their smaller firm.