Distinguish carefully between a minimum wage and a wage subsidy as alternative policies to assist low-wage workers.  Explain your answer.(needs to be at least 100 words )

Q: Suppose the rent control (price ceiling) in California will be nullified for a year and that market…

A: Meaning of Price Ceiling: The term price ceiling refers to the situation under which the…

Q: Which of the following is the most likely result of an increase in the minimum wage? a. a decrease…

A: In minimum wage law, there is a minimum wage that needs to be paid to the laborers, it is generally…

Q: The imposition of a binding minimum wage makes all workers affected by it better off.

A: The statement is false Minimum wage is like a price floor which is set above the equilibrium wage.…

Q: n the figure above, a shift from D1 to D2 might be caused by a. a decrease in the supply for labor.…

A: Labor: - labor is one of the factors of production, any physical and mental work by humans against a…

Q: Discuss the type of price control that a government would implement if it wishes to impose a…

A: Maximise social welfare is the government aim so the government interfere in the market. If the…

Q: Suppose the government sets a Price Ceiling at $5. If the market equilibrium price is $3, the Price…

A: Price Ceiling is the maximum price set by the government which can be charged for a good or service.…

Q: Explain the pros and cons of imposing a minimum wage in a country and illustrate your  arguments by…

A: A minimum wage is the lowest wage per hour that a worker can be paid under federal law. Non-exempt…

Q: The minimum wage is often offered as a possible way to address the income gap. There is, however, a…

A: Minimum wage is the lowest wage below which an employee cannot hire workers.

Q: Analyze the pros and cons of raising the minimum wage. What position do you support for our economy…

A: Minimum wage - A minimum wage that firms are bound to pay and they can't pay less than minimum wage…

Q: price floor will lead to a transfer of consumer surplus to producer surplus; a price ceiling will…

A: In a market, when government imposes price control, it may use price ceiling or price floor…

Q: Which of the following is a consequence of rent controls established to keep housing affordable for…

A: The maximum price that is set by the government for a particular commodity and services is called…

Q: Given a market model as follow: Q1 = a – bP + eP2 - fP3 (a, b,e, f > 0) (c, d, g,h > 0) (1) (2) Q1 =…

A: In the market model, we have two equations. One denotes he equation for the quantity demanded in the…

Q: FUTA is a federal tax that is paid by employers for each employee to provide _____ compensation to…

A: FUTA refers to the Federal Unemployment Tax Act. It is used to fund the benefits that are provided…

Q: Assume the market wage in industry A is $9/hour. If the government increases the minimum wage from…

A: Minimum wage is a price floor implemented by the government usually with the aim of increasing…

Q: Government farm programs are very controversial since they are designed to assist only the farmers.…

A: The food grain which are essentially been produced by the agricultural sector are the basic…

Q: A shortage of a good arises when there is a binding price floor. A surplus of a good arises when…

A: Price floor refers to the minimum legal price that can be charged for a good. Price ceiling refers…

Q: If the minimum wage is set   A. equal to the equilibrium​ wage, it will create a shortage of labor.…

A: Answer- above the equilibrium wage, it will create unemployment.

Q: Empirical studies on the effects of minimum wage increases in contiguous states: Find negative…

A: A minimum wages permitted by law is the most reduced compensation that businesses can legitimately…

Q: If the government imposes a minimum wage which is lower than the equilibrium wage rate in the market…

A: A labor market refers to the platform where households supply labor to earn wages while producers…

Q: What is the effect of a minimum wage set above the equilibrium wage rate in the market for…

A: The equilibrium in the labor market is achieved when units of labor demanded are equal to the units…

Q: Analyze with the help of a graph how an export subsidy affects the terms of trade of the country…

A: Export subsidy refers to the subsidy given to the domestic traders to encourage export of goods.…

Q: What can be the goal of the government for the following policy? Give some examples. Per unit…

A: Subsidy: It is an amount of money which is being given directly either to the producers to encourage…

Q: Explain what minimum wages are, and what the results of the implementation and enforcement of…

A: Introduction: Demand-side economics holds that tax breaks for the wealthy do not benefit the…

Q: Consider the information below on the labor market in a given country.   Wage Rate/Hour Quantity…

A: At equilibrium, quantity demanded of labor is equal to quantity supplied of labor.

Q: For each of the wages listed in the following table, determine the quantity of labor demanded, the…

A: Answer: According to the graph, the labor demand and labor supply curve intersect each other at a…

Q: Which of the following best describes a price ceiling? The minimum price the producer is allowed to…

A: The maximum price that is set by the government for a particular commodity and services is called…

Q: Describe the impact of the federal government setting the federal minimum wage at a price that is…

A: Minimum wage law is imposed by the central or state government stating that employees or labours…

Q: give an explanation to the following statements:   The higher the elasticity of supply in the…

A: The supply elasticity is the ratio of the percentage change in quantity supplied to the percentage…

Q: An income Gini coefficient of zero means that everyone earns the same income there is no deadweight…

A: Gini coefficient is used to determine the level of inequality in an economy. It ranges from 0 to…

Q: Refer to Question 2b.  If the price of $75 on the image above is a price _____, then it would be…

A: Answer for Q #2b   A binding price occurs in the market when the government sets a required price…

Q: Suppose that in an effort to help low-skill workers the government raises the permissible minimum…

A: Minimum wage: Minimum wage is the wage rate that is determined by the government of the country and…

Q: The price cap concept is one of the possible government interventions in the market and means that…

A: Price-cap is one of the concepts of the economic regulation that sets a limit on the prices of the…

Q: The market for Commodity A is competitive.   The demand curve for Commodity A is: Q = 65 - 2 P.…

A: Subsidy is imposed on producers to encourage production. This increases the price received by…

Q: Which of the following is the most likely outcome of minimum wage laws? an increase in both the…

A: The labor market of the economy determines the equilibrium wage rate and the equilibrium quantity of…

Q: _________ is the price fixed by government for specific goods and services. a. Market price b. Flat…

A: In a free market, the prices are determined by the interaction of the market forces of demand and…

Q: Support a higher minimum wage. Analyze the challenges that this will be for households, firms, and…

A: The minimum wage is the minimum remuneration offered to the employees against the work done.

Q: How would imposing a minimum wage below the market-clearing wage affect employment in a competitive…

A: Minimum wage is an example of a price floor.  The price floor is a regulated price that prevents the…

Q: When government support prices exceed levels at which supply and demand are in equilibrium,…

A: Since you have asked multiple questions, we will solve the first -two questions for you. If you want…

Q: Suppose the rent control (price ceiling)  in California will be nullified for a year and that market…

A: A price ceiling is defined as the government-imposed price control on how low a producer charges for…