Why are universal standards for minimum wages and hours worked difficult to agree on?
What will be an ideal response?
Universal standards for minimum wages, limits on the number of hours someone can work in a day, and health and safety issues in the workplace are difficult to define given the wide variation in incomes and living conditions around the world. High-income countries, where unskilled labor is relatively scarce, face an entirely different set of economic constraints compared to those faced by low-income countries where unskilled labor is relatively abundant. For example, if low-income countries are forced to pay a minimum wage high enough to satisfy critics in high-income countries, many people fear that the result would be the closing down of production and a rise in unemployment rather than an increase in living standards. In other words, too high a minimum wage may be well intentioned, but it may reduce living standards in low-income countries. Even this is ambiguous, however, since it is no easy matter to determine how high is too high.
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If the government runs an ad campaign to shame litterers, they are:
A. trying to get individuals to internalize the negative externality created by their decision to litter. B. using protectionist policy to help the trash-collecting industry. C. wasting a lot of money. D. All of these statements are true.
Which of the following is not true about a monopolistic competitor?
A. It charges a higher price than a perfectly competitive firm, ceteris paribus. B. It produces less output than a perfectly competitive firm, ceteris paribus. C. It can earn economic profits in the long run. D. It maximizes profit at the point where MC = MR.