Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level?
Defend your position using economic principles.
It theoretically and arguably believed that the United States should not pass a minimum wage. Firstly we have to understand that increasing or placing a minimum wage might or might not cause an increase in unemployment. However, this is not important as the claim here or the statement is about anti- poverty policy. According to the CBO (Congressional Budget Office) report, raising the minimum wage from $7.25 to $10.10 will only reduce the number of people in poverty by 900 000 despite the report saying 16.5 million people will benefit from it. This is because only a few minimum wage earners are in poverty. Therefore increasing the minimum wage does not decrease poverty.
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According to the text, the cost-plus-markup procedure
A) is the only sensible way to set prices. B) is a sure-fire way to ruin a business. C) is a general rule of thumb for price searchers. D) can be practiced only by price takers.
The two-period dynamic monopoly model is more useful than the static monopoly model in analyzing monopoly behavior when
A) the product produced requires a bandwagon effect. B) the product produced generates a positive network externality. C) the monopoly initially uses a lower introductory price. D) All of the above situations.
In the simplest Keynesian model, planned investment is assumed to be
a. positively related to income. b. negatively related to income. c. constant. d. absent.
If the two countries are at points A and B in Figure 35.1 and do not trade, what is the total number of motorcycles produced per year?
A. 2,000. B. 3,000. C. 4,000. D. 1,000.