Since 2009, the national minimum wage has been $7.25 per hour for most occupations in the private sector. Many of those who support an increase in the minimum wage believe this is one way the government could possibly reduce poverty, while its opponents believe that it creates unemployment and hurts low-skilled workers. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

4) What might be an unintended impact on government spending on entitlements 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?

5) Do advocates of a minimum wage law believe that workers should be paid based on their output (i.e., performance) or on their level of need? What do opponents of the minimum wage law believe workers’ wages should be based on? Which one is sustainable and why?

For the sake of comparison, how should students be graded in class, based on their performance or level of need?

6) Advocates of a minimum wage often believe that employers would “exploit” or “take advantage” of their workers if there were no minimum wage. How would you know if employers are “taking advantage” of their workers if there were no minimum wage? What could the employee do if they believed they were being exploited?

Since 2009, the national minimum wage has been $7.25 per hour for most occupations in the private sector. Many of those who support an increase in the minimum wage believe this is one way the government could possibly reduce poverty, while its opponents believe that it creates unemployment and hurts low-skilled workers. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

1) Describe who the suppliers and demanders are in the labor market. Is a government-mandated minimum wage a price floor or ceiling? Discuss the effect of a minimum wage law from a supply and demand standpoint, making sure to address the concept of surplus or shortage.

2) Raising the minimum wage will also affect the labor costs of businesses. What is going to happen to the prices these businesses charge for their products? And who is going to be most affected by these price changes, those with low incomes or with high incomes?

3) Discuss any potential changes in the incentives for low-skilled workers - those who keep their jobs and their hours - to increase their human capital when the minimum wage increases. What about those who lose their jobs or never get hired? Discuss the incentives for employers to substitute capital inputs (technology and automation) for labor.

Q6 - List four shift factors of supply and explain how each affects supply.

Who did more for the world, Henry Ford or Mother Theresa? Explain.

Must be 3-5 Sentences

Which of the following is an example of what backs fiat money?

bartering arrangements

trust the public has that it can be exchanged for services and goods

precious metals such as silver

If the reserve requirement is 10 percent and a monetary expansion increases excess reserves by $5 million, the total change in the money supply after all rounds of

100 million

50 million

5 million

What is an example of a security?

Fiat money

Checking account

Credit cards

All over the globe commodities (e.g. corn, wheat, beans) are priced in United States dollars. This in economic terms, is an example of

flexible values.

store of value.

What will happen to the money supply if the Fed decreases the reserve requirement?

The money supply will decrease.

The money supply is unaffected by the reserve requirement.

The money supply will increase.

units of account.

Market demand is QD= 50-P and the market supply is QS=P. The government imposes a percentage tax of 30%. What is the new equilibrium price and quantity? Select one: a. P*=25; Q*=25 b. P*=20; Q*=30 c. P*=30; Q*=20 d. P*=30; Q*=30 e. None of the above

. Suppose a factor price taker purchases one unit of factor X for $10. At what price would it purchase the second unit, and what would marginal factor cost (MFC) equal?

1. It would purchase the second unit for $10, and MFC equals $10.
2. There is not enough information to know what it would purchase the second unit for, and thus we do not know what MFC equals.
3. It would purchase the second unit for $10, but there is not enough information to know what MFC equals.
4. There is not enough information to know what it would purchase the second unit for, but MFC equals $10.

WHAT are THE CAUSES OF OUR PRESENT FINANCIAL CRISIS?

How do expectations influence the markets for loanable funds and financial markets? What is the difference between the efficient-market hypothesis and the random walk theory?

Fixed exchange rates and monetary policy

Consider a group of open economies with perfect capital mobility among them.

a) Assume that there is a Leader country. All other countries (referred to as the Follower countries) fix their exchange rates to the Leader country. Discuss the effectiveness of monetary policy in the Follower countries.

(b) If the Leader country reduces its money supply to fight inflation, what must the Follower countries do to enforce their fixed exchange rates? What is the effect on their economies? What would happen if the Follower countries did nothing?

1. Along a given demand curve, a decrease in supply will typically

   a		decrease price, but the change in quantity could be in either direction
   b		increase price and decrease the quantity
   c		decrease price but leave quantity unchanged
   d		decrease both quantity and price
   e		increase both quantity and price

2 Stagflation refers to

3. Which of the following would be included in this year's GDP?

Five years ago, the U.S. Supreme Court chose to hear a case in which a man was arrested by the Secret Service in 2006 for going up to then-Vice President Cheney and telling him that he was wrong about his decision to go into Iraq. The man sued the Secret Service for arresting him, saying that the First Amendment protects his right to criticize the government. The Court decided whether he had a First Amendment right to sue. In another case last year, a woman sued Wal-Mart for firing her for protesting the Iraq policies of then-President Bush. However, in that case, no court would hear the case (it was dismissed by all courts in which it was filed), and the woman did not get her job back. By so doing, those courts effectively upheld Wal-Mart’s right to fire the woman. Why would a federal court (i.e., the Supreme Court) elect to hear the Cheney case but no federal court would hear the Wal-Mart case?

• A. The Cheney case arguments were better made than the Wal-Mart case, otherwise, the Wal-Mart case would have been heard by the courts.

• B. The First Amendment only protects speech when that speech is threatened by the government, not when it’s threatened by private individuals or corporations.

• C. Cases that involve government officials get precedence over cases that involve private businesses.

• D. The Wal-Mart case looked to the courts more like a dispute between the woman and her employers than a First Amendment case. But, in principle, the courts would have heard the case otherwise.

1 Markets and government regulations are both needed to provide healthcare goods and services effciently and effectively. Do you agree. Justify your answer.

2 Give an example of a healthcare circumstance in which both public and private regulation are present. Which serves the consumers better and why?

3 Assuming you are the manager of a company, how could you use behavioral economics to increase the number of insured employees in your firm?

modelling Production Functions-

Q=2L-.01L^2+3K-.02K^2

L=55 K=55

compare this to L=50 K=50

Calculate output elasticity (% changeQ)/(%change inputs)what does it tell you about returns to scale for this firm and why?