Question

Raj works as a cleaner in a hotel. He has a low and irregular income. However, his employer makes him work overtime and does not allow him to take leaves.

How does the employer benefit from employing Raj?

• A. Employers profit from increased production.
• B. Employers make a comfortable living.
• C. Employers have to pay more for production.
• D. Employers accumulate wealth.

Answer 1

Answer: (A), (B), (D)

Employers accumulate wealth.

When people are given low salaries but are still made to produce a lot of goods and services, the employers profit at the expense of the employees' labour. The employers accumulate wealth and gain access to world-class living comforts. This expliotation of labourers by wealthy employers leads to income inequality, wherein most of the weatlh is concentrated to just a small portion of the population.