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The man behind the counter represents the employer (or firm/business owner) in the labour market.

Economics

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Here are the answers to your questions:

13.1) The man behind the counter represents the employer (or firm/business owner) in the labour market.

13.2) The negative effect of a high minimum wage identified in the cartoon is job loss or unemployment (retrenchment).

13.3) Minimum wage is the lowest legal hourly, daily, or monthly remuneration that employers can pay their workers. It is a price floor set by the government to ensure a basic standard of living for workers.

13.4) An advantage of a minimum wage policy is that it can improve the living standards of low-wage workers by increasing their income, thereby reducing poverty and income inequality. It can also boost worker morale and productivity.

13.5) To draw a minimum wage graph:

  • Draw a standard supply and demand graph for labor.
  • The vertical axis represents the wage rate (price of labor), and the horizontal axis represents the quantity of labor (number of workers or hours).
  • Draw a downward-sloping demand curve for labor (DLD_L) and an upward-sloping supply curve for labor (SLS_L).
  • The intersection of DLD_L and SLS_L determines the equilibrium wage (WeW_e) and equilibrium quantity of labor (QeQ_e).
  • Draw a horizontal line above the equilibrium wage, labeled as Minimum Wage (WminW_{min}).
  • At WminW_{min}, the quantity of labor supplied (QSQ_S) will be greater than the quantity of labor demanded (QDQ_D).
  • The difference between QSQ_S and QDQ_D at the minimum wage represents the unemployment or surplus of labor caused by the policy.

14.1) TWO characteristics of public goods are:

  • Non-rivalrous: One person's consumption of the good does not reduce its availability for others.
  • Non-excludable: It is impossible or very costly to prevent individuals from consuming the good, even if they don't pay for it.

14.2) TWO kinds of social grants are:

  • Child support grant
  • Disability grant

14.3) TWO examples of public goods are:

  • National defense
  • Street lighting

14.4) TWO examples of merit goods are:

  • Education
  • Healthcare
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