Ashford ECO204 2020 June Week 5 Discussion (dq1+dq2) Latest

ECO204 Principles of Microeconomics

Week 5 Discussion

DQ1 Demand for Labor and Minimum Wage [WLOs: 1, 2] [CLOs: 1, 2, 3, 4]

Prior to beginning work on this discussion, read Jared Bernstein’s article, Amazon’s Raise: Unequivocally Good News (Links to an external site.).

 Based on the article’s information and Chapter 12 in your textbook, respond to the following:

Why is the demand for labor called a derived demand?

In the labor market, what are the firm’s demand curve for labor and the workers’ supply curve of labor?

How is a firm’s wage normally determined in the labor market?

How could Amazon decide to raise its minimum wage to $15 per hour, despite the federal minimum wage being fixed at $7.25 per hour?

What are positive and negative effects of Amazon raising its minimum wage to $15 per hour on its employees, total revenue, and other companies and their employees?

Your initial post should be a minimum of 300 words.

DQ2 Public Choice and Rent Seeking [WLOs: 4, 5] [CLOs: 1, 4, 6, 7]

Prior to beginning work on this discussion, read Tim Worstall’s article, One Benefit of Nancy MacLean’s Democracy in Chains - Public Choice and Rent Seeking Popularised (Links to an external site.).

Based on the article’s information and Chapter 14 in your textbook, especially Sections 14.1 and 14.2, respond to the following:

What is the public choice idea or theory?

Explain what rent seeking is.

How can you combine the ideas of public choice and rent seeking?

Choose one real-world example of combining public choice and rent seeking to evaluate.

Your initial post should be a minimum of 300 words.