Read the case “The Minimum Wage” from Chapter 6 “Supply, Demand, and Government Policies” Page: – 117 given in your textbook – “Principles of Macroeconomics”. A case study discusses the federal minimum-wage law.
Questions: 1
Important Note: – Support your submission with course material concepts, principles, and theories from the textbook.
Questions: 2 (5 Marks)
Should a nation tend to export or import goods for which it has a comparative advantage? Explain. Why do economists oppose policies that restrict trade among nations? (Minimum 500 words). (2.5 Marks)
Maria can read 80 pages of economics in an hour. She can also read 40 pages of sociology in an hour. She spends 6 hours per day studying. (2.5 Marks)
Draw Maria’s production possibilities frontier for reading economics and sociology.
What is Maria’s opportunity cost of reading 120 pages of sociology?
