Elucidate the improvement in welfare of low skilled worker


Elucidating the improvement in the welfare of the low skilled employees.

Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low. In an effort to improve the "welfare" of such workers the government offers to pay each low skilled worker $100 with the condition that they do not work any hours.

a. Can this plan succeed in increasing a worker's welfare? Demonstrate.

b. Must the plan be successful? Demonstrate.

c. From the worker's prospective, on what does the success of the plan depend? Explain.

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Business Economics: Elucidate the improvement in welfare of low skilled worker
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