Why are universal standards for minimum wages and hours worked difficult to agree on?
What will be an ideal response?
Universal standards for minimum wages, limits on the number of hours someone can work in a day, and health and safety issues in the workplace are difficult to define given the wide variation in incomes and living conditions around the world. High-income countries, where unskilled labor is relatively scarce, face an entirely different set of economic constraints compared to those faced by low-income countries where unskilled labor is relatively abundant. For example, if low-income countries are forced to pay a minimum wage high enough to satisfy critics in high-income countries, many people fear that the result would be the closing down of production and a rise in unemployment rather than an increase in living standards. In other words, too high a minimum wage may be well intentioned, but it may reduce living standards in low-income countries. Even this is ambiguous, however, since it is no easy matter to determine how high is too high.
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A) the informal sector. B) the halfway economy. C) the net domestic product economy. D) the formal sector.
Because inflation in Germany after World War I sometimes exceeded 1,000 % per month, one can conclude that the German economy suffered from
A) deflation. B) disinflation. C) hyperinflation. D) superdeflation.
Costs borne solely by the individuals who incur them are
A) private costs. B) social costs. C) internality. D) common property.
If a commercial bank has assets valued at $200 million and a net worth of $20 million, what is the value of the bank's liabilities?
a. There is not enough information to determine. b. $20 million c. $220 million d. $180 million e. $200 million