Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
If this general observation is correct then it would seem that liberals are more concerned with equity and conservatives are more concerned with efficiency. Neither side is right. That is a normative question. The reason is that there is a tradeoff between equity and efficiency. Which one you want more of is a question of your values.
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An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point on the frontier
Indicate whether the statement is true or false
Under the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciated below its lower limit against the German mark, the Bank of England was required to buy ________ and sell ________,
thereby ________ international reserves. A) pounds; marks; losing B) pounds; marks; gaining C) marks; pounds; gaining D) marks; pounds; losing