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minimum wage (J3)<br />The minimum rate of employee remuneration fixed by a government for an hour's work in a particular industry, region or whole economy. Many countries, including France and Australia, have long used this policy response to the problem of ww PAY. Minimum wage legislation was passed in the UK in 1998. It is often argued that the imposition of a new minimum wage, or an increase in existing levels, will have an unemployment effect and will fuel inflation by increasing the entire WAGE coNTouR; in the figure, setting a minimum wage Wrn above the equilibrium wage w;, reduces employment by Qe - Qm. There are many countries where this has happened but detailed labour market analysis, especially where MONOPSONY is present, is needed before such policies are wholly abandoned. & D s
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put option (G1)<br />A right to sell a financial instrument or commodity at the current price within a specified period, normally of three months.<br /><em>See also:</em> call option
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circulating capital (DO, M2)<br />WORKING CAPITAL which is USed to finance the current expenditure of a business, especially its wage bill and purchase of raw materials and energy, together with stocks of goods. sMITH distinguished this form of capital from fixed capital, i.e. buildings, machinery, land improvements and HUMAN CAPITAL.
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