Nicole Leva &1 6/14/18 952 AM Quiz: Chapter 4 Quiz Submit Qu This Question: 1 pt

Question

Nicole Leva &1 6/14/18 952 AM Quiz: Chapter 4 Quiz Submit Qu This Question: 1 pt 21 of 32 (19 This Quiz: 32 pts A Wall Street Journal article noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wage to $10.10 an hour would reduce U.S employment by 500,000 but th 900,000 Americans out o poverty Source: Julie Jargon and Eric Morath, "As Wage Debate Rages, Some Have Made the Shit, Wal Street Joumal, April 8,2014 The minimum wage mght reduce employment because OA some workers may choose not to work at the higher wage O B. the increase raises the wage for all workers O C employer costs would increase O D. t would roquiee training and benefits which wouid be too expensive to hine new workers The minimum wage might raise some people out of poverty because O A the standard of living for everyone wouid increase. O B. income support programs would also raise the payments O c. more training would be avaiatie for workers O D. it would increase the incomes of people who had minimum wage jobs previously These estimates inluence the normative analysis of the minimum wage because they O A confuse the general public and make the debase senseless of pol cymakers and members of the general republic regarding this iasue Click to seleet your answer

Explanation / Answer

1. C) Employer costs would increase

Increases are risky with large populations in states with large populations of educated, unskilled immigrants. In these states, this group has a difficulty looking for jobs. Unemployment, and, jobless rates will rise. Employers will be reluctant to pay high wages to low-skilled workers.

2. D) This would increase the incomes of those who had minimum wage jobs previously.

The number could be approximately 900,000.

Increase in the minimum wage will not increase the standard of living for everyone; this may not necessarily increase the training for workers. The Government may have to expand income tax credits for training & education efforts for workers will low-skills. This is not relevant to the question though. Employers may have to provide opportunities such as learn while you earn.

Income substitute programs compete for time with low-wage jobs. Increase in the minimum wage does not lead to increase in such payments. This does not really lift people out of poverty. Inflated wages lead to a lower number of recruitments.

3. Normative - Opinion based; cannot be proved, or, disproved; subjective, value-based

C

influence the judgment of policymakers, and, members of the public

These do not make the debate senseless; estimates cannot predict accurately, and, a normative analysis is the value judgment, and, subjective analysis; it is not based on data.

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