Cheryl Is a Professor at a Local University

question 152

Short Answer

Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?

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Definitions:

Supply-side Economics

An economic theory that suggests lower taxes and decreased regulation will stimulate the economy by increasing production.

Lower Income-tax

The reduction in the rate at which personal income is taxed, aiming to increase disposable income for individuals.

Federally Guaranteed

Refers to financial or other forms of guarantees provided by the federal government, ensuring the fulfillment of certain obligations or repayment of debts.

New Right

A political movement that emerged in the late 20th century, advocating for conservative policies, free-market economics, and traditional values.