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President Obama Is Hoping to Increase the Federal Minimum Wage

question 38

Essay

President Obama is hoping to increase the federal minimum wage to $10.50 per hour. Use a diagram to illustrate the effect this increase would have on unskilled labor if:
1) demand for labor is nearly vertical.
2) demand for labor is very elastic


Definitions:

Psychodynamic

An approach in psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.

Social Norms

Implicit or explicit rules that a group has for the acceptable behaviors, values, and beliefs of its members.

Formal Education

The structured educational system comprising schools, colleges, and universities where learning is facilitated by trained teachers.

Socialization

How children learn to become mature members of society; also known as acculturation.

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