It Is Sometimes Argued That the Poor Have a Characteristic

question 6

True/False

It is sometimes argued that the poor have a characteristic lifestyle, or culture of poverty, that assists them in adjusting to their world.

Understand the principles and criticisms of minimum wage laws.

Analyze the effects of changing minimum wage on employment and poverty.

Acknowledge the historical context and legislative timeline of minimum wage laws.

Describe the methodologies for measuring poverty and establishing the poverty line.

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Definitions:

Paradox of Voting

The concept that for a rational, self-interested voter, the costs of voting will normally exceed the expected benefits, given the low probability that one vote will influence the outcome.

Majority Voting

A voting system in which decisions are made based on the majority of votes received, often used in elections and organizational decision-making processes.

Principal-Agent Problem

A scenario in which conflicts of interest arise because the goals of a principal (e.g., a shareholder) do not align with those of an agent (e.g., a company executive).

Moral Hazard Problem

The possibility that individuals or institutions will behave more recklessly after they obtain insurance or similar contracts that shift the financial burden of bad outcomes onto others. Example: A bank whose deposits are insured against losses may make riskier loans and investments.