User Account

All Pages

Unintended consequences of raising minimum wage

Assignment Help Macroeconomics
Reference no: EM132506613

Assignment Instructions.

Make sure to show every detail in your answers. Label your diagrams clearly (where applicable). Your work must be typed and submitted electronically (via e-campus and not to your instructor's e-mail). Your answers must be written below each question in this worksheet. Include the worksheet and cover sheet in your uploaded final product.

Note: You will NOT receive any score/points if you fail to adhere to the above instructions.

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 demand of labor using hypothetical numbers to illustrate your answer. Calculate the surplus resulting from the minimum wage increase (VC1, EQS2).

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 (VC1, EQS2).

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)

4. What will be 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 your answer (VC3, EQS5)

5. Explain how the change in minimum wage will affect America's competitiveness in the Global economy. (VC3, EQS6)

Reference no: EM132506613

Questions Cloud

Describe the extractor machine is an item of property : If the extractor machine is an asset, further describe if the extractor machine is an item of property, plant and equipment in accordance with MFRS
Processing an insurance claim : Prepare a draft email requesting an extension of time to allow for the delay caused by the vandalism; obtain sign-off for this from the client
Define unemployment : Define unemployment? Different types of unemployment with an example
What percentage of the total interest has been paid : After 27 payments have been made, what percentage of the total interest has been paid ( round to the nearest percentage point)?
Unintended consequences of raising minimum wage : Discuss the unintended consequences of raising minimum wage, as it relates to potential changes in the incentives for low skilled workers to increase their huma
Different options regarding how to charge the owners : The Shoreline Condominium Association is considering whether to install a major new heating system
Determine the anticipated return after financing costs : What will earnings per share be? Would it be higher or lower than the earnings per share computed for the most aggressive plan computed
Create a diary of all on-site communication and events : How should this additional cost be incorporated into the total cost of the build and What action(s) must be taken if the cost cannot be incorporated in this way
Depreciation of a currency : In a certain economy, when income is $100, consumer spending is $60. The value of the multiplier for this economy is 4. It follows that, when income

Reviews

Write a Review

Macroeconomics Questions & Answers

  As the research begins to come in about your expansion

As the research begins to come in about your expansion opportunities abroad, the marketing department has discovered that the price elasticity

  Airline market-price discrimination

Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)

  What will happen to the marginal propensity to consume

If the consumption function in economics is a straight line then what will happen to the marginal propensity to consume?

  Effects of adverse technological shock on the labor market

Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market

  Information for the economy of nightwing

The equations below show some macroeconomic information for the economy of Nightwing. All autonomous values are in billions of dollars.

  Machine description will provide the basis for assignment

The following machine description will provide the basis for this assignment. You will create a virtual machine/operating system for the machine described below that will accept programs in the target machine language. The details for this assignm..

  What are the advantages and disadvantages of breaking up the

In professional sports, the decisions about TV contracts, salary cap, free agency, entry in to a new market are made by their respective entities like MBA, NHL, NFL, MLB and MLS. These entities operate rather closely like a cartel.

  Formula for family of indifference curves

What is the formula for his family of indifference curves? What do these curves look like? In this example, are movies and books perfect substitutes, perfect complements, or neither?

  Determine whether the demand or supply changes

Once you have shown that on your graph, you must state what happened to equilibrium price and quantity. Now remember, when demand and supply change, you will not be able to determine either the direction of price or quantity.

  Connection to a public web server

A suggested approach is to begin with a workstation running a web browser and trace a connection to a public web server (i.e. facebook; eBay; etc).

  Responsible for designing business documents

Consider this scenario. You work in the human resources department of a nationwide retailer. You are responsible for designing business documents within your department.

  What happens to market equilibrium quantity

What happens to Market Equilibrium Price (MEP) if Supply decreases as Demand increases?c. What happens to Market Equilibrium Quantity (MEQ) after there has been an increase in Supply followed by a decrease in Demand which is followed by another in..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd