if the imposition of a binding minimum wage results in muh higher unemployment among workers seeking minimum wage jobs,

A) firms will respond by demanding more labor
B)lqbor demand is relatively elastic
C) labor demand is relatively inealstic
D) those workers who are employed will be worse off than before the minimum wage law

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Jean KeelingLv2

16 May 2019

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times more productive than a minimum wage worker

b. Assume that there are 20 minimum-wage workers in the economy for each $150-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $150-per-hour lawyer earn a week?

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c. Suppose that the government pairs each $150-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer%u2019s income each week and distributes it equally among the 20 minimum wage workers with whom each lawyer is paired, how much will each of those minimum-wage workers receive each week?

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d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired.

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$ per week

How much is that on an hourly basis?

$ per hour

In 2010, many unskilled workers in the United States earned the Federal minimum wage of $7.25 per hour. By contrast, average earnings in 2010 were about $18.00 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $160.00 or more per hour.

a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the Federal minimum wage?

Instructions: Round your answer to two decimal places.

times more productive than a minimum wage worker

How many times more productive was a $160-per-hour lawyer compared to a worker earning minimum wage?

Instructions: Round your answer to two decimal places.

times more productive than a minimum wage worker

b. Assume that there are 20 minimum-wage workers in the economy for each $160-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $160-per-hour lawyer earn a week?

$ per week

How much does a minimum-wage worker earn a week?

$ per week

c. Suppose that the government pairs each $160-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyerÃ¢â¬â¢s income each week and distributes it equally among the 20 minimum wage workers with whom each lawyer is paired, how much will each of those minimum-wage workers receive each week?

$ each week

If we divide by the number of hours worked each week, how much does each minimum-wage workerÃ¢â¬â¢s weekly transfer amount to on an hourly basis?

Instructions: Round your answer to two decimal places.

$ per hour

d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired.

How much per week will each minimum-wage worker receive?

$ per week

How much is that on an hourly basis?

$ per hour