It encourages spending, which increases other kinds of tax.
<u>Explanation:</u>
Increasing the minimum wages increases the standard of people from the poverty line. It not only increases the welfare but also increases the spending among the people. But raising the wages also creates a negative effect causing inflation and higher costs for the business. This would decrease the profit of the firm.
The spending profile of employees helps us to access how they spend their extra earned money on purchasing things which is acquired by the government in the form of taxes. The combination of these direct and indirect effects results in lower economic activity.
idk good question im ao confused
Answer:
Marshall defined it in these words. Economics is the study of humans, in relation to the ordinary business of life. It studies that portion of the personal and social activities, which are closely related to the attainment of material resources, related to welfare and its utilization.
