Explain why a minimum wage is unfair
What will be an ideal response?
Workers who receive wage hikes and retain their jobs gain from the minimum wage but workers who lose their jobs and workers who must extensively search for a job lose. Those who keep (or find) jobs are not necessarily the least well off, so the minimum wage fails the fair results approach to fairness. And the minimum wage also fails the fair rules approach to fairness because the minimum wage blocks voluntary transactions that otherwise would occur.
You might also like to view...
The level of output (real GDP) that equals aggregate expenditure is called the ________ level of real GDP.
A. induced B. potential C. natural rate D. equilibrium
Suppose an insurance company has estimated that 20 percent of all of its potential policy owners are high-cost and sets a price for their insurance policy with the understanding that 20 percent of its policy owners will be high-cost. If the true percentage of high-cost potential policy owners is 40 percent, the insurance company has set its price too ________ and will have ________ high-cost
policy owners than expected. A) low; less B) low; more C) high; less D) high; m
Standard Census data on the distribution of income:
A. take all taxes and transfer payments into account. B. are before taxes in that they do not account for personal income and payroll taxes. C. include noncash transfers. D. exclude cash transfers.
In Table 17.4, 
A. Brazil has an absolute advantage in both goods but a comparative advantage in lumber only. B. the United States has an absolute advantage in both goods but a comparative advantage in cars only. C. the United States has an absolute and comparative advantage in Cars while, Brazil has an absolute and comparative advantage in lumber. D. the United States has an absolute and comparative advantage in both goods.