1. Some studies have attempted to determine how employment changes after a minimum wage increase by surveying individual firms before and after the wage increase. The data from each firm is then added together. What is the problem with that procedure?

2. There have been both maximum and minimum wage laws throughout history, though only minimum wages laws are prevalent today. How would maximum and minimum wage laws differ in their effects on discrimination?

3. Why would a South African manufacturer expand production by opening a plant in Poland? (When answering, consider that South Africa has high unemployment and more productive workers than what is available in Poland).

4. How do wage laws lead to a different impact for different groups of people?

5. In the first half of 2010, the proportion of American adults with jobs had the largest decline in more than 50 years. However, the unemployment rate did not increase. How could this happen?

6. Why are wages lower and working conditions worse in poorer countries?

7. Referring to Question 2 - what are the likely consequences of the possible ways to improve these situations?

8. How do safety laws affect the economy?

9. How do child labor laws affect the economy?

10. How do laws affecting the hours of work affect the economy?

REFFRENCE

1) BASIC ECONOMICS

BY THOMAS SOWELL

FIFTH EDITION

QUESTION 1-4 CHAPTER 11

QUESTION 5 -10 CHAPTER 12