Question 2 from chapter 17: "Is it morally objectionable for corporations to pay the market wage...

Question 2 from chapter 17: "Is it morally objectionable for corporations to pay the market wage for employees if the market wage does not provide a 'decent' standard of living? Explain."

Rycroft, Robert S. 2018. Economics of Inequality, Discrimination, Poverty, and Mobility, 2^nd Ed. NY: Routledge.

Expert Solution

Employers generally are not interested to pay an employee more than the market wage or what the employee is worth to the company, even if that is not sufficient to meet employee's expenses. Market wage rate represents what similar employers would pay the worker for similar jobs, given the skills, abilities and the experiences the worker possesses. Most employers prefer to pay market wage rate because they think if they pay below it, their workers may leave for higher wage.

No, it is not morally objectionable for corporations to pay the market wage for employees if the market wage does not provide a decent standard of living because market wage rate is the minimum wage rate which are provided by all employers. At the same time, It is true that minimum wage rate is not sufficient to cover all expenses of the worker. They have to cut their expenses to adjust with the market wage rate. A minimum wage rate is adjustable but below minimum is not accepted by the employee and it is ethically objectionable for the corporation to pay the workers below the minimum wage.

However, it is always good to pay workers a living wage which is enough to meet their basic needs and left some extra money with them to save. Living wage is more important than minimum wage because without a living wage a worker may be forced to
a. work overtime or take multiple jobs.
b. engage their children in work instead of sending school.
c. be denied their basic rights to food,shelter, health, housing and education and unable to take part in cultural events and other ceremonies
d. be unable to fight against serious diseases such as cancer, kidney failure and heart-attack.

Living wage makes workers more productive and they are less likely to leave the company. A living wage provides workers a decent standard of living.

Rahul Sunny answered 1 year ago

Question 5 from chapter 17: "Is fighting relative poverty an appropriate policy for the government of...

Question 5 from chapter 17: "Is fighting relative poverty an appropriate policy for the government of a highly affluent society to pursue? Explain your position." Rycroft, Robert S. 2018. Economics of Inequality, Discrimination, Poverty, and Mobility, 2nd Ed. NY: Routledge.

Question 2: Draw the standard market diagram for a low-wage market that has enacted a binding...

Question 2: Draw the standard market diagram for a low-wage market that has enacted a binding minimum wage. Comment on the positive and negative effects (on low-wage workers and their families) of imposing a higher wage floor. Where possible, Illustrate your points by reference to your diagram

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 9:...

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 9: "Is statistical discrimination "worse" than personal prejudice? Investigate this question in all its ramifications."

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 12:...

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 12: "How responsible are people for their own poverty? What responsibility does the government have in the alleviation of poverty?"

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 11:...

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 2 from chapter 11: "As a matter of law and a matter of economics are the anti-discrimination laws interpreted correctly by the courts?"

Martin Jackson receives an hourly wage rate of $17, with time-and-a-half pay for all hours worked...

Martin Jackson receives an hourly wage rate of $17, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $163; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson, rounded to the nearest cent?

Question 2: In an oligopolistic market, firms pay close attention to the strategies of their rivals....

Question 2: In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some rivalry in many monopolistically competitive markets? You also must cover the oligopolistic market.

If unlike a perfectly competitive market, a monopsonist has to pay a higher wage to attract...

If unlike a perfectly competitive market, a monopsonist has to pay a higher wage to attract more workers, why, other things being equal, will a monopsonist pay a lower wage than a perfectly competitive employer?

1) Corporations are required to pay dividends. a) True b) False 2) A bond is an...

1) Corporations are required to pay dividends. a) True b) False 2) A bond is an asset of the holder. a) True b) False 3) A bond represents part ownership in a company. a) True b) False 4) The government considers realized capital gains to be income. a) True b) False

The Economics 207 chapter discusses "Market inefficiencies: Externalities and Public Goods" The 2 part question is:...

The Economics 207 chapter discusses "Market inefficiencies: Externalities and Public Goods" The 2 part question is: a) If there is a positive externality associated with a market activity and the government does not intervene to correct for it, what will be the result of the market activity in terms of efficiency...overallocation or underallocation of resources to the market activity? Discuss your answer. b) If there is a negative externality associated with a market activity and the government does not intervene...

Question