duction: In the U.S., workers are paid at least the highest minimum wage set by federal, state, or local law. Minimum wage is a controversial topic among economists, politicians, and voters. This controversy has been documented by The Economists in an article titled Economists argue about minimum wages published on 7/8/2017 (https://www.economist.com/finance-and-economics/2017/07/08/economists-argue-about-minimum-wages (Links to an external site.)). The standard introductory economics textbook provides a static analysis of minimum wage and its consequences, pointing to the decrease in employment due to price control. Several economists have attempted to study the effects of minimum wage. For example, the increase in minimum wage to $15/hour in Seattle-Tacoma area was studied by two independent groups of researchers that found opposing results (See https://www.huffingtonpost.com/entry/the-2017-berkeley-and-university-of-washington-studies_us_596824fae4b06a2c8edb456e (Links to an external site.) for details). In this activity, you will be able to go beyond the textbook to better understand minimum wage policies. Prompt: Textbooks tend to oversimplify the issues around minimum wage. The static analysis with the demand-and-supply diagram tends to portray minimum wage laws as very distorting and negative. There is a sharp contrast between the unambiguous textbook analysis of minimum wage and the ambiguous empirical results. For example, the supply-and-demand model ignores any income effect by minimum wage earners or the possibility of monopsony power in sectors like fast food which employ many minimum wage workers. The purpose of the podcasts and the readings is to expose you to some of the intricacies and debates surrounding minimum wage policy. While there is a lack of consensus about minimum wage among economists, this policy draws a lot of attention with several politicians proposing increases to the minimum wage. With more knowledge that complements the textbook, you are now asked to consider different policy recommendations to modify, maintain, or remove minimum wage that goes beyond the material covered in your textbook. What is the best minimum wage policy? Choose one and discuss your choice by answering the discussion questions that follow. Federal minimum wage should be revised and modified based on changes in national costs of living such that they continue to guarantee an acceptable living standard. State and local minimum wages should be adjusted yearly based on state and local changes in costs of living such that they continue to guarantee an acceptable living standard. Minimum wages should be abolished as they create unemployment. Minimum wages should not be modified, as they fulfill their current purposes. Important questions: What is the best minimum wage policy? What is the most important reason for your choice? Do we need a minimum wage? Why? Who are the winners of a minimum wage? Who are the losers of a minimum wage? Does minimum wage create unemployment? If so, who is more likely directly affected by this minimum wage? Why would different cities and states set different minimum wages? Is the minimum wage binding in all locations and/or industries? Explain and give an example. What are the consequences of having adjacent cities or states with different minimum wages? How could the CPI be used to modify minimum wage? What are alternative policies that attain similar goals as the minimum wage law? Are they more effective than the minimum wage