Describe how each item will affect the wage of a production worker. Consider eac
ID: 1105948 • Letter: D
Question
Describe how each item will affect the wage of a production worker. Consider each change independently. 1. People start to enjoy the products made by the company that employs the worker 2. A machine is created that performs the same task as the worker and costs less than 3. The job the worker performs is divided into two separate jobs done by two people 4. The government creates a community college program that trains people to such that the employer needs to produce more. the worker does. now instead of one. become production workers for relatively little costExplanation / Answer
Answer 1:- As the people start enjoying the products produced by the company which employs the workers and thus the workers have to produce more, I this case the wages of the workers will be increased as the firm will require the employees for the production and if any of the employees leave the firm, it will hamper the production and company will lose the sales. Thus to retain the existing workers and attracting new workers, the company will offer higher wages. In simple words, the increased demand for products will also result in increased demand for labour thus increasing the wage rates.
Answer 2:- In this case, the wage of the workers will reduce as the workers can be replaced by the machines thus the employer will offer lower wages to the manpower. The workers will also accept the owner wages as they will be having the threat of being replaced by the machines. Or in other words, the machines will reduce the demand for labour thus bringing down the wages.
Answer 3:- In this case, the demand for the labour will be increased resulting the wage rates to increase.
Answer 4:- As the training program will produce more production labours, thus the supply of the workers will increase and this will lower the wage rates due to increased supply of labours.
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