Econ 101

In: Business and Management

Submitted By chops93
Words 605
Pages 3
The Minimum Wage Rate The minimum wage rate (the lowest legal rate to pay employees) has become a very controversial issue in the Unites States in recent years. The minimum wage rate does not reach the average living wage rate (the amount it costs to live in an area) in most parts of the country. The minimum wage rate is currently $7.25 in America, while the living wage rate for smaller cities such as Racine WI is $8.66 and Kenosha WI at $8.97 (Living Wage Calculator). The minimum wage rate needs to be raised to equal living wage rate in order for people to cover their living expenses. People also need to be able to set aside money for emergency situations. Human beings should be entitled to the basic necessities in life. According to Jeannette Wicks, "nearly two-thirds of people in households with incomes above the poverty line but below twice that level reported serious economic hardships--failing to pay their rent, having their phone disconnected, worrying about running out of food, or relying on the emergency room for routine medical care" (Wicks-Lim). Without a minimum wage rate that equals the living wage rate, people will continue to fall into a hole of debt they cannot dig themselves out of. It is not acceptable to allow people to fall further and further into debt, while businesses continue to deposit money in their savings accounts. Minimum wage does not provide a suitable savings for the average minimum wage worker. According to Jeannette Wicks-Lim, the average annual income on a $7.25 minimum

wage is $15,080 (Wicks-Lim). The average annual after tax income required for Racine WI is $16,471 and $17,076 for Kenosha WI (Living Wage Calculator), so a minimum wage worker is in debt by the end of the year. If those on minimum wage cannot afford the basic necessities they will not be able to afford a trip to the emergency room. What will minimum wage…...

Similar Documents

Econ 101

...The number of people who applied for unemployment benefits and applications went down slightly last week, after a previous big drop the week before. The labor department said that there were 367,000 seasonal applications for unemployment. Applications for unemployment are a great measure of the pace of layoffs. When applications are consistently below 375,000, it says that job growth is strong enough to lower the countries unemployment rate. There were only 135,000 jobs that employers added in March and April, which is well below the amount of jobs available during the previous three months. This raised fears that the job market was slowing down. If applications stay where they are or even drop lower, than it is possible that hiring will rise to recovering levels of 150,000 to 200,000 per month. Leaps in job openings, points to more hiring in the coming months. From December to February it has been the best months of job growth since July 2008. With the unseasonably warm winter, many companies looked to higher earlier than they normally would of during the spring. Economists now are trying to calculate how much of an affect this will have on hiring during the spring. There are about 500,000 Americans that have left the work force since February. This is one reason unemployment has continued to fall, because people who leave the work force are not counted in unemployment. Even though the unemployment rate is falling we are still a long way away from recovery. Because...

Words: 580 - Pages: 3

Econ

...Econ Homework Chapter 3:Problem 2 2. Consider an economy in which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption, the marginal propensity to consume, planned investment, government purchases of goods and services, and net exports: Ca=1500-10r ,c=0.6 ,T=1800 Ip=2400-50r ,G=2000 ,NX=-200 a. compute the value marginal propensity to save is as follows: 1-C=1-0.6=0.4 b. Autonomous planned spending, Ap, equals Ca − cTa + Ip + G + NX = 1,500 − 10r −.6(1,800) + 2,400 − 50r + 2,000 − 200 = 4,620 − 60r. Therefore, at an interest rate equal to 3, autonomous planned spending equals 4,620 − 60(3) = 4,440. c. Since the marginal propensity to save equals 0.4 and the equilibrium level of income equals Ap /s, the equilibrium level of income equals 4,440/.4 = 11,100, given the interest rate equals 3. d. Since autonomous consumption changes by 4 percent of any change in household wealth and the decline in the housing market in 2006–09 and drop in the stock market of 2007-09 reduces household wealth by 3 trillion dollars, the decrease in autonomous consumption that results from the decline in household wealth equals .04(3) = 120 billion. e. Since the decrease in autonomous consumption that results from the decline in household wealth equals 120 billion, autonomous......

Words: 326 - Pages: 2

Econ 101

...After reading A Letter from Prison I have many takeaways and lessons learned. It is absolutely imperative that companies maintain their financial documents with as much accuracy and honesty as possible, and do their due diligence in taking whatever measures appropriate to have accurate financial data. If a company does not understand how to properly record revenue than it is their due diligence to comply with the accounting standards that are set and they must hire employee’s who understand how to properly handle the situation. The ethics within this case are very negative when it comes to revenue recognition and the backdating of software contracts. Recognizing revenue within certain time periods for future contracts that may or may not actually occur was another take-away from this case: you simply can’t do that and still comply with generally accepted accounting principles. The payments for these contracts were not reasonably assured because of the multi-year lengths, and, this was my “ah-ha” moment when reading this case. Safeguarding financial reporting is more about the reporting companies than anything else in my observation with a letter from prison. The company chose to backdate contracts and recognize revenue improperly without informing their auditors of these decisions or situations that were occurring. I do think that within other companies sometimes it is about the auditors and their role is to provide honest and professional auditing work of the financial......

Words: 906 - Pages: 4

Econ

...ECON 191, Fall 2012 Guidelines for Writing an Economics Research Paper Writing a good economics paper is both an exciting and a nontrivial task. It requires a sustained effort in identifying an important question and in developing a credible model to think about that question or a testable hypothesis to answer it. In many cases it may require collecting data that gives the opportunity to test the hypothesis that you develop. You are encouraged to structure your paper in four parts: introduction, literature review, body, and conclusion. A brief abstract of no more than 100 words should precede your paper. Introduction Identifying a significant and well formulated question is the single most important part of the research process and the most difficult as well. A good research question has to be concise (remember, you are writing a 15-page paper, not a book), feasible and important. Choosing a research question requires balancing importance and feasibility. Feasibility means tractability for theoretical research and data availability for empirical research. Whenever you come up with an idea for a research question, always try to think about a critic sitting in front of you asking “Why should I care about this?” Consider this question to be a first filter for your research question. Identify a well-defined research question. The introduction is where you (1) present the research question, (2) motivate why it is important and briefly outline (3) how you go about answering it...

Words: 1405 - Pages: 6

Econ 101 H/W

...A) At the time of the news article, the U.S. dollar had depreciated. The short- run effect of this depreciation was to make U.S. goods and services and U.S. properties less expensive for foreigners. Mr. Reddy, among others, was trying to take advantage of the lower price by purchasing investment properties and development opportunities in the United States. B) Mr. Reddy’s actions increase the demand for U.S. dollars. If others take similar actions, the demand for U.S. dollars increases. If U.S. residents also begin to believe that buying U.S. investment properties offers a profitable opportunity, the supply of U.S. dollars decreases as the U.S. residents purchase U.S. properties rather than foreign properties. In addition, Mr. Reddy is expecting that the dollar will appreciate back to its previous level. If others have the same expectation, once again the demand for dollars increases and the supply of dollars decreases. On both counts, the dollar appreciates. This change in the exchange rate resembles a self-fulfilling prophecy because market participants expect the dollar to appreciate and, as a result, it does so. Of course, the fundamental reason for the change is the shift in people’s beliefs. 3) A) TheChinesegovernmentmodifieditscurrencypolicyonJuly21,2005.It announced that the yuan’s exchange rate would become “adjustable, based on market supply and demand with reference to exchange rate movements of currencies in a basket” (it was later announced that the......

Words: 364 - Pages: 2

Econ

...Econ Problem Set #3 1. Suppose that a comic book publisher pays an annual licensing fee of $20,000 for the rights to an artist’s character. Which would have a larger impact on the number of readers of the comic using this character: (i) an increasing in the printing costs associated with publishing the comic, or (ii) an increase in the artist’s licensing fee to $22,000. Please carefully explain your reasoning. The increase in printing cost would have the larger impact on the number of readers of the comic. Because the increase in printing cost could be thought as a variable cost increase. The increase in cost would vary when the quantity increases. The increase costs per book could be easily realized and thus the publisher would choose to increase the price of goods. The number of readers would thus decrease due to increase of selling price. For the increase in license fee, it would be considered as fixed cost, which is more important in the short run business instead of long run businesses. 2. A firm's total cost schedule and the demand for its product are summarized in the table below (a) Complete the table and use the tools discussed in the online lecture and in the book to determine the level of output that maximizes the firm's profit. Costs | Revenues | Quantity Produced | Total Cost | Marginal Cost | Quantity Demanded | Price | Total Revenue | Marginal Revenue | 0 | 0 | - | 0 | 155 | 0 | - | 1 | 70 | 70 |...

Words: 505 - Pages: 3

Econ

...in this field. History Main articles: History of economic thought and History of macroeconomic thought Economic writings date from earlier Mesopotamian, Greek, Roman, Indian subcontinent, Chinese, Persian, and Arab civilizations. Notable writers from antiquity through to the 14th century include Aristotle, Xenophon, Chanakya (also known as Kautilya), Qin Shi Huang, Thomas Aquinas, and Ibn Khaldun. The works of Aristotle had a profound influence on Aquinas, who in turn influenced the late scholastics of the 14th to 17th centuries.[100] Joseph Schumpeter described the latter as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary, interest, and value theory within a natural-law perspective.[101][not in citation given] A seaport with a ship arriving A 1638 painting of a French seaport during the heyday of mercantilism. Two groups, later called "mercantilists" and "physiocrats", more directly influenced the subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and......

Words: 17785 - Pages: 72

Econ

...ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #1 Suggested Answers and Comments Notice: (1) This set of extra problems contains 25 multiple-choice problems and 6 analytic (short-answer) problems. These problems are not homework and will not be graded. The aim of these problems is to provide you with additional exercises. (2) I will give solutions of the assignment and the “extra-problem” set after the due date. Page 1 Problem 1~25: Multiple choice problems 1. C 2. A 3. D This problem helps you pay attention to the difference between variables and functions. First, whether prices (wages are prices for labor) are assumed to be flexible or 4. C sticky depends on the time horizon. In other words, the assumption of flexible prices is proper in a long-run model while the assumption of sticky prices makes sense in a short-run model. Second, a large part of macro-theory is based on the optimizing behavior of individual agents, such as households and firms, but the main concern of macroeconomics is the movement of the whole economy aggregated from those individual decisions. 5. B Economists, as well as most other social scientists, cannot do controlled experiments. 6. A Consider the National Income Accounts Identity: Y = C + I + G + NX 7. B 8. C Inventory is a kind of investment, so the sale of inventory can be understood as a decrease of investment, but there is an increase in consumption in the same......

Words: 1249 - Pages: 5

It 101

...IT 101-002 September 22, 2013 IT News Report Assignment 1 Article Summary The article, “The iPhone 5s fingerprint reader: what you need to know”, explains how the fingerprint sensor works to its readers. For the first time, Apple has introduced a new technology called the “Touch ID” in its iPhone 5s. Basically, this feature enhances the security for the phone’s owner, where they no longer have to solely rely on entering a passcode to access their phone. The new iPhone 5s makes use of a capacitance fingerprint reader, which measures and senses the user’s fingerprint and further forms an image. This sensor has been placed in the “home” button of the phone. Eventually, the iPhone does not store the user’s fingerprint but instead runs a scan every time a finger is placed on the sensor. The emergence of this new technology does not mean that passcodes will no longer be used. Passcode is a must! If the sensor breaks or something happens to your finger, you need a way to get back into your phone. Other Apple services, such as iCloud or iTunes, will still require passwords, as fingerprint readers cannot always be used for them. However, purchases can be made using the Touch ID. According to Apple, this new technology will prove to be exciting to its users. A simple four-digit passcode will no longer always need to be used to get into your phone. Touch ID along with the use of a passcode will prove to be more secure for the iPhone user. Analysis Day by day, new advancements in...

Words: 461 - Pages: 2

Swc Econ 101

...Business Rules and Data Models Insert Name Insert Course Insert Date Business Rules and Data Models Big organizations like universities, colleges, banking and hospitals with large amount of data require a software that is able to organize the data and in the database. Therefore the primary use of a database management system is its ability to collect data, store and transmute it into informative information that can help business make decisions. In order to make this possible, a database must be able to reduce data redundancy, inconsistency, upsurge security features, reliability and allow concurrent access of the data and improve accuracy and accuracy. The most important purpose of such a database is to provide automated methods that are able to develop, store and retrieve data more efficiently (Chapman, 2014). There are several drawbacks that are associated with the use of conventional file systems. This is because of the fact that most of such databases applications are developed on top of an existing file system. For this reason, the following problems are expected. To begin with, is redundancy; it is a situation where a lot of file formats together with duplicate information is found in different files (Gillenson, 2005). Accessing such data is difficult and the duplication of data in a file system may sometimes require a new program to be written. Another problem associated with conventional file systems is the difficult in file isolation. This......

Words: 847 - Pages: 4

Econ

...25 markers Econ The term inflation means a persistent increase in the level of prices. The question believer that an increase in aggregate demand can cause inflation, however there can also be other factors that can cause inflation. The term aggregate demand is that total planed expenditure in the economy. Known by the identity C+I+G+(X-m). In macroeconomics there are 2 types of inflation, demand-pull inflation and cost-push inflation. The demand-pull inflation is caused by an increase in total spending (aggregate demand), the economy is producing beyond the economy’s ability. The aggregate demand in an economy strongly outweighs the aggregate supply, which cause the price to increase. As the economy reaches full capacity, firms will be struggling to produce enough to meet the rising demand. As you can see from the figure, AS is slow curving up and becoming inelastic because of full capacity. The demand curve then shifts to the right because of a high demand, from AD1 to AD2. This causes involuntary stock depletion due to a low supply. When this happens, firms will choose to increase price to widen the profit margins. So price level increase from P1 to P2. Furthermore, as employment in an economy increase, the demand in goods and services will be much more inelastic. This allows firm to increase the price more without any significant fall in demand. There are various reasons that can cause an increase in aggregate demand. First of all, a decrease in exchange rate......

Words: 626 - Pages: 3

Econ 101

...1. Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not? 2. Determine whether each of the following is an explicit cost or an implicit cost: a) Payments for labor purchased in the labor market b) A firm’suse of a warehouse that it owns and could rent to another firm c) The wages that owners could earn if they did not work for themselves 3. What are economies of scale? Please give an example. What are diseconomies of scale? Please give an example. 4. Your rich relative died and left you $100,000, which you decided to use for your own Internet business. What will be your fixed and variable costs? Briefly discuss. 5. Explain the shape of the long-run average cost curve. How firms use the long-run cost curve to make choices about production? 6. What is the relationship between marginal cost and average cost? Briefly explain. 7. What distinguishes a firm's short run period from its long run priod? Briefly explain. 8. As a farmer, you must decide how many times during the year to plant a new crop. Also, you must decide how far apart to space the plants. Will diminishing returns to be a factor in your decision making? Briefly discuss. 9. How does having a menu that is uniform around the country provide McDonald's with economies of scale? Briefly discuss. 10. Please read an......

Words: 630 - Pages: 3

Econ

...ECON Project I. Introduction The efficient market hypothesis says that these returns should not be systematically related to the information known in 1990. We have the data of the return of the stock prices from various firms over the four-year period between the end of 1990 and the end of 1994. If the characteristics of a firm reflected the return of the stock, this could help with predicting the stock price in the future. We hypothesize that the return of the stock are related to debt capital ratio, earnings per share, salary of the CEO, net income, logarithm of net income and salary, and the stock price at the end of 1990 and 1994. II. Literature Review We are formulating how the CEOs compensation can affect the stock prices within a four-year period between the end of 1990 and 1994.An investigation based on the use of individual evaluation in CEO’s incentive plans that contrasts with objective stock price based measures may involve. Using complementary data evidence can be shown that individual performance evaluation increases growth opportunities (Bushman p. 161-193). An examination of the executive compensation structure of 153 randomly-selected manufacturing firms in 1979–1980 provides evidence supporting advocates of incentive compensation, and also suggests that the form rather than the level of compensation is what motivates managers and CEOs to increase firm value (Hamid p. 163-184). III. Data and Methodology Our data is a list of observations from 142......

Words: 1407 - Pages: 6

Econ 101 Paper

...Trans Pacific Partnership: A Balanced Approach To Agriculture The Trans Pacific Partnership could be one of the most comprehensive trade agreements that the world has ever seen, opening up new opportunities for all 12 member nations. Many Canadian companies are excited about the deal, and perhaps the most intrigued industry is the Canadian agricultural industry. Some of the most beneficial aspects of the deal for Canada, come to the agricultural industry. In fact, Canada could simply not afford to be out on this deal. Many of Canada’s current trading partners are involved in the TPP, so missing out on such an opportunity could have meant an eroding effect to several Canadian industries. Today, Canada is the fifth largest exporter of agricultural products worldwide, and through this deal, Canadian exports will only rise. The TPP will reduce or eliminate several tariffs on agricultural imports for countries involved in the deal. This will provide countries with an incentive to buy more, now that Canadian products will be relatively cheaper. Gains from the elimination of tariffs, and enhanced market access for Canadian agriculture are especially significant in markets such as Japan. Japans tariff removal on 32% of its agricultural imports, allows Canadian agricultural products to be more feasible for the Japanese market. Considering the article in the Asian Economic Papers Journal, it’s evident that due to the combined operation of the income and......

Words: 694 - Pages: 3

Econ 101

...MODULE 1: 5/23 - 6/12 pg.23 10 Definitions Capital: wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. Economics: the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind. Labor: productive activity, especially for the sake of economic gain. Investment: the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value. Aggregate: formed by the conjunction or collection of particulars into a whole mass or sum; total; combined. Macroeconomics: the branch of economics dealing with the broad and general aspects of an economy, as the relationship between the income and investments of a country as a whole. Budget Line: A graphical depiction of the various combinations of two selected products that a consumer can afford at specified prices for the products given their particular income level. Economic Growth: an increase in the amount of goods and services produced per head of the population over a period of time. Economic Resources: the goods or services available to individuals and businesses used to produce valuable consumer products Scientific Method: a method of research in which a problem is identified, relevant data are gathered, a hypothesis is formulated from these data, and the......

Words: 383 - Pages: 2