1. Minimum wage up to £6.50 an hour A million workers in the U.K. will receive their first real wage rate rise in six years. The national minimum wage will increase by 19p an hour to £6.50, the...

1. Minimum wage up to £6.50 an hour A million workers in the U.K. will receive their first real wage rate rise in six years. The national minimum wage will increase by 19p an hour to £6.50, the government has announced. Source: BBC, 12 March 2014 Think about the U.K. minimum wage: How can this rise in the minimum wage lead to job rationing? What kind of unemployment is created by job rationing? What effect does a rise in the minimum wage have on the natural unemployment rate? Does a rise in the minimum wage have any effect on potential GDP?’