Labor Markets and Wage Determintation

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October 29, 2020
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Critical Inquiry Goal: Demonstrate a knowledge base to ask more informed questions and
learn more complex concepts.
Search Google News for either “minimum wage,” “rent control,” or “externalities.” Read an article
or two on one of those key words. Write 1-3 paragraphs then include the answers to one set of
questions below (choose either Minimum Wage or Rent Control or externalities questions). You
will need to use your textbook and/or your lecture notes to evaluate the statements in the article.
Minimum Wage:
1) Does the article support an increase in minimum wage? Why or why not?
2) According your textbook and/or lecture notes, who benefits from a minimum wage increase and
who suffers from it? How?
3) Do the statements in the article align with your textbook and/or lecture notes? Explain.
4) Why would a politician favor a minimum wage increase? Cite an example.
5) What do you think the minimum wage would be if it was set by economists with the goal of
helping the poor? Explain your answer using what you have learned about supply and demand.

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