T7ltlanlz’c The Curse of Econ 101 When it comes to basic policy questions such as the minimum wage, introductory economics can be more misleading
- What are 2 examples the author of the article uses to explain why a minimum wage might not increase unemployment?
- The article mentions “A higher minimum wage motivates more people to enter the labor force, raising both employment and output.” What is correct about that statement and what is not correct, given what we learned in class? Explain your answer.
- The author of the article discusses, in several paragraphs, why the simple model of supply and demand and a price floor (minimum wage) is too simple and does not accurately reflect reality. However, what evidence does author provide later on in the article that goes completely against his own argument (and that actually provides supporting evidence that the Econ 2106 framework of a minimum wage we discussed in class is indeed reflected in reality)? In other words, what trade-off does the author mention when talking about the impacts of a minimum wage that is exactly what our in-class model of a binding minimum wage would predict?