1.Compare the effects of wage subsidies versus minimum wages:

a.In what ways are the effects of the two policies similar

b.In what ways are the effects of the two policies different

c.If you are a business owner, which policy do you prefer? Explain.

d.If you are a worker, which policy do you prefer? Explain.

e.If you are a governor, which policy would you prefer? Explain.

If you are a proponent of higher minimum wages, are you likely to also view wage subsidies as an effective policy for increasing wages for workers? Hint: consider what must be true about the labor market in order for people to support higher minimum wages. Then, consider how that would impact wage subsidies.