Question

According to the information we examined regarding minimum wages in the U.S., which of the following statements is true?

a. All states in the U.S. currently use the same minimum wage rate
b. The majority of workers that earn at or near the minimum wage in the U.S. are under 20 years of age
c. The value of the minimum wage, relative to the average wage in the economy, has generally declined over the last 50 years
d. The minimum wage was created in 1825 by General Custer
e. All of the above

Consider the use of rent control policies for apartment buildings. Which set of words best fills in the blanks in the following statement: Rent control policies are expected to create a in the market, and this will be a more severe problem in the .

a. Shortage, short-run
b. Shortage, long-run
c. Monkey, coconuts
d. Surplus, short-run
e. Surplus, long-run

Answer 1

For the minimum wage in US the case is true for- ans. c. The value of minimum wage relative to the average wage in the economy has generally declined over 50 years.

The minimum wage is not same in all the states in the US. In some states the minimum wage is higher than the federal minimum wage. In various state we get the minimum wage that they set in their state only. So minimum wage is not same in all state. The majority of minimum wage earner not below 20 years. The minimum wage was not created in 1825 by General Custer.

Rent control policies are expected to create a shortage in the market and this will be a more severe problem in the long run. It is because the rent control restrict the supply of rooms and this creates problems in the long run.