In a 1973 Paper Entitled "A Living Wage," Published in Annals

question 167

Essay

In a 1973 paper entitled "A Living Wage," published in Annals of the American Academy of Political and Social Science (vol.409: 33-41),Daniel R.Fusfeld from the Department of Economics at the University of Michigan makes the following statement:

The only effective way to eliminate poverty in the United States is to pay all workers a living wage.As long as working people labor in jobs in which earnings are inadequate to meet even the poverty standards of income,their families will remain poor; furthermore,their poverty will be reproduced from one generation to the next.Our society will continue to suffer from all of the ills associated with poverty: disease,degradation,crime,hostility and anger.

This essay is a normative assessment of the living (or minimum)wage.In your short-answer essay,include the following elements:
a.What is the purpose of a living wage?
b.Compare and contrast the effects of a living-wage policy set in a labor market where the demand for workers is relatively price inelastic and one where it is relatively price elastic.Graph and explain your results.

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Definitions:

Cerebellum

Part of the brain that plays an important role in motor control, coordination, and balance.

Reticular Formation

The reticular formation is a network of nerve pathways in the brainstem involved in consciousness and the regulation of sleep and wakefulness.

Irreversible Coma

An irreversible coma is a permanent state of unconsciousness in which a person cannot be awakened, indicating severe brain injury or dysfunction.

Trigeminal Nerve Function

The function of the fifth cranial nerve, which involves transmitting sensory information from the face to the brain and controlling some muscle movements for chewing.