Question

1. What are two economic arguments AGAINST legal rent controls to keep rents below the equilibrium amount?

2. Consider the following scenario: In many states and municipalities, the minimum wage has increased in 2018. According to economic theory, some potential workers will NOT be hired at the higher wage, and some others may be laid off by being replaced by machines. Those employee who continue working at the higher minimum wage will earn more and have more income, but those who cannot get a job or lose their jobs will lose their income.

Question: What is one way that the State can help these laid-off workers get back into paying jobs again?

Answer 1

The workers are being replaced by machines so the employment will reduce. The work who will lost their job they should be employed in other units. They can be trained and promoted to the new vacancies in the institution.

State can help them to provide some kind of policies that can help them to get employment.

- state should conduct a survey to know the exact number of such people. After conducting the survey state should collect the vacant ceats and make them settle to that job

Secondly state should start some job oriented schemes that could provide jobs to unemployed. State should launched some type of scheme that could make them self earned.

State should give them a opportunity to work on some projects that are being constructed by state and make them employed.