Assignment ECON 0123

Assignment ECON 0123

Assignment Instructions.

Make sure to show every detail in your answers. Label your diagrams clearly (where applicable). Your work must be typed and submitted electronically (via e-campus and not to your instructor’s e-mail). Your answers must be written below each question in this worksheet. Include the worksheet and cover sheet in your uploaded final product.

Note: You will NOT receive any score/points if you fail to adhere to the above instructions.

Minimum Wage Discussion
The national minimum wage is $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources. Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

1. Minimum wage is a price floor. In a paragraph, discuss in how an increase in minimum way will affect the quantity demanded and supplied of labor. Draw the supply and demand of labor using hypothetical numbers to illustrate your answer. Calculate the surplus resulting from the minimum wage increase (VC1, EQS2).
2. Discuss the unintended consequences of raising minimum wage, as it relates to potential changes in the incentives for low skilled workers to increase their human capital, and for employers to substitute inputs (technology and automation for labor (VC1, EQS2).
3. Discuss the impact of increased minimum wage on prices of the products produced by the workers working at or near minimum wage, and the overall impact on consumer purchasing. (VC1, EQS3)
4. What will be the impact on government spending on entitlement spending such as welfare, food stamps, and unemployment compensation in light of the fact that changes in the minimum wage can create changes in unemployment and underemployment? In 200 words, explain your answer (VC3, EQS5)
5. Explain how the change in minimum wage will affect America’s competitiveness in the Global economy. (VC3, EQS6)

Assignment Rubric
4

Exceptional-

3

Satisfactory

2

Developing-

1

Unsatisfactory-

Empirical & Quantitative (interpretation & analysis)

All of the answers are correct. Provides accurate identification and explanation on information presented.

Most of the answers are correct. Provides accurate identification and explanation on most of the information presented

Some of the answers are correct. Provides accurate identification and explanation on some of the information presented.

Little or none of the answers are correct. Attempts to provide identification and explanation on information presented.

Writing & Communication

Writing is well organized, ideas are clearly expressed, and is coherent and effective in fully addressing the question posed.

Writing is well organized, ideas are clearly expressed, and is coherent and effective in mostly addressing the question posed.

Witting is organized, ideas are fairly expressed, and are partially effective in addressing the questions posed.

Writing is poorly organized, ideas are incoherent and ineffective in addressing the question posed.

Critical thinking

Student’s position, (perspective &)

Conclusions and related outcomes

Specific position or perspective takes into account the complexities of the issue. Recognizes the limits of position, and acknowledges others point of view.

Conclusion and related outcomes are logical and demonstrate informed evaluation with supporting evidence clearly stated.

Specific position or perspective takes into account the complexities of the issue while acknowledging opposing points of view.

Conclusion is logically tied to information and related outcomes, including opposing viewpoints clearly stated.

Specific position or perspective acknowledges different sides of the issue.

Conclusion is logically tied to information presented with some outcomes clearly stated.

Specific position or perspective is taken, but is rather obvious, with no further analysis or discussion undertaken.

Conclusion is inconsistent with information presented and is not clearly stated.

Social Responsibility

Takes an informed responsible action, to address an economic, environmental or social challenges of a national problem, evaluates individual, collective and governmental action to solve the problem.

Analyzes the economic, environmental and social challenges of a national problem, identifying a range of actions from a personal, collective and governmental actions to address the problem.