Exam 33: Minimum Wage

Suppose you were to hear a politician defend the minimum wage on the grounds that workers would be happier and more productive with a higher minimum wage, you would know this person to be relying on the ____ argument.

-In Figure 33.1, at the minimum wage the producer surplus is

-In Figure 33.1, at the market wage the consumer surplus is

For the minimum wage to be relevant it must be

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $8.00 an hour to attract workers, a cut in the minimum wage to $5.00 an hour would cause them to

The heart of the argument against an increase in the minimum wage is that

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated the productivity of workers both before and after an increase in the minimum wage and found that the increase in the minimum wage increases productivity by more (on a percentage basis)than it increased costs. You would know her to be relying on the ____ argument.

If the cost of living is higher in richer cities than in poorer cities, and the nominal minimum wage were the same in every city, then the real purchasing power of the minimum wage would necessarily be

The "elasticity argument" criticizing traditional economic analyses of the minimum wage implies that

The rule-of-thumb among many economists suggests that a 10% increase in the minimum wage results in a ________ in the number of jobs held by teens.

Of the people receiving the EITC ___ would be in poverty without it.

Those that lose from an increase in the minimum wage are

City governments are not allowed to increase the minimum wage in their cities.

-In Figure 33.1, at the market wage the producer surplus is

-In Figure 33.1, at the minimum wage the consumer surplus is

Suppose you were to hear a politician oppose the minimum wage on the grounds that it would hurt employers and employees (who lost their jobs)more than it would help those who earned a higher wage, you would know this person to be relying on the ____ argument.

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour to new employees. Suppose a worker earns a $0.75 raise to $8.00 an hour. Now suppose the minimum wage rises to $8.25 and hour. This worker would be paid.

State governments are not allowed to increase the minimum wage in their states.

If an increase in the minimum wage increases workers' incomes by $75 and reduces employers' incomes by $100, while workers' spend all of their income increase but employers reduce their spending by only seventy-five percent of their income reduction, aggregate spending

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour. Suppose the economy slides into recession such that the new equilibrium wage was $6.50 per hour. This would cause them to