If the minimum wage were raised to $10.00 per hour, it would no longer be considered a poverty wage. Would it be wise to raise the minimum wage to this level?
What will be an ideal response?
The answer to this question is a matter of judgment. Students should, however, consider the effect of such an increase on prices, employment, the impact on small and marginal businesses, and the typical person now working at the minimum wage.
You might also like to view...
Use the following graph to answer the next question.
Suppose an economy's full employment output is at the level Qf shown on the graph. Further, suppose the economy's current aggregate demand is represented by AD1. If the government swiftly implements a stimulus program that immediately shifts the economy's aggregate demand to AD2, the aggregate demand in the short-to-medium term would be most closely represented by
A. AD0. B. AD1. C. AD2. D. AD3.
A production possibilities frontier that is bowed-inward implies
A) economies of scale. B) diseconomies of scope. C) economies of scope. D) no economies of scope.
The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks. The cost of imposing a regulation that would ban the chemical is $10 million. OSHA has calculated that each person saved by this regulation has a value equal to $10 million. If the benefits are exactly equal to the costs, what
probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical? a. 0.001 b. 0.01 c. 0.1 d. 1.0
The fixed basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C. Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C. Base year prices are $1 for each unit of A, B, and C. What is the CPI in the current year?
A) 140 B) 43 C) 233 D) 430 E) 100