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(a) Describe how this ratio has changed from the 1950s to the 1990s. What might

ID: 1189176 • Letter: #

Question

(a) Describe how this ratio has changed from the 1950s to the 1990s. What might have caused this apparent shift in fundamental economic behavior in the United States?

(b) This ratio fell steadily from 1968 to 1974 and again from 1980 to 1990, but the underlying dynamics of the minimum wage and the average manufacturing wage were different during the two time periods. Explain.

(c) What has been happening to the ratio of the federal minimum wage (nominal) to the average hourly manufacturing wage from 1990 to today?

Explanation / Answer

(a) Describe how this ratio has changed from the 1950s to the 1990s. What might

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