Discuss the unintended consequences of raising minimum wage

Assignment Help Microeconomics

Reference no: EM133255691

Assignment:

Minimum Wage Discussion

The national minimum wage is $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

1. Minimum wage is a price floor. In a paragraph, discuss in how an increase in minimum way will affect the quantity demanded and supplied of labor. Draw the supply and deman of labor using hypothetical numbers to illustrate your answer Calculate the surplus resulting from the minimum wage increase.

2. Discuss the unintended consequences of raising minimum wage, as it relates to potential changes in the incentives for low skilled workers to increase their human capital, and for employers to substitute inputs (technology and automation for labor.

3 Discuss the impact of increased minimum wage on prices of the products produced by the workers working at or near minimum wage, and the overall impact on consumer purchasing (VC1, EQS3) the impact on government spending on entitlement spending such as welfare food stamps and unemployment compensation in light of the fact that changes in the minimum wage can create changes in unemployment and underemployment? In 200 words explain answer.

Reference no: EM133255691

Questions Cloud

How did the victim react to the jacob blake case : How did the victim's react to the Jacob Blake case. Give your opinions and thoughts on what could have been done different to help or improve the case, during t

Define what is meant by saying that a case is on all fours : Amy is working on a legal research project for her firm. The attorney for whom she is working has been throwing around several legal terms with which she is unf

What is the psychological contract in workplace : What is the psychological contract in the workplace? How does this most significantly affect employee satisfaction, commitment, and retention?

Will betty be successful on her counterclaim for divorce : By 1990, Don and Betty had been married for 5 years. That same year, Betty finds out that Don committed adultery and, after admitting it, Don leaves the home. A

Discuss the unintended consequences of raising minimum wage : Minimum wage is a price floor. In a paragraph, discuss in how an increase in minimum way will affect the quantity demanded and supplied of labor.

Denny was born weighing only five pounds : Denny was born weighing only five pounds, with a small head, thin upper lip, and oddly shaped eyes.

Contemporary law office management : What is the difference between a law firm's marketing plan and its mission statement?

What regions of the brain activate : A fMRI study examined what regions of the brain activate during encoding when subjects are asked to view and remember words.

Explain the reason for decision : Some Courts allow "fresh complaint" statements made by a victim to others about an assault, even though those statements would normally be inadmissible hearsay.

User Account

All Pages