1. Some economists oppose raising the minimum wage because they believe this would lead to a significant increase in unemployment among low-skilled workers. Is there an alternative to a higher minimum wage to raise the incomes of the working poor? Why do some economists favor raising the minimum wage?
2. Federal and state governments periodically raise excise taxes on cigarettes. Politicians often argue that these tax increases discourage smoking. What other motive is there for raising taxes on cigarettes?
3. One effect of rent control in New York City is a reduction in the number of apartment buildings. If rent control were eliminated, would this result in an increase in the number of apartment buildings and, therefore, lower rents for apartment dwellers?
4. Price floors have been imposed in markets for dairy products such as milk and cheese. Surplus dairy products are bought by the government to maintain the floor price. These surplus products must be stored in some location. As an alternative to storage, suppose a program was established to distribute surplus dairy products freely to the elderly and poor. Would this eliminate the government's storage problem?
5. The federal government has made several attempts to reduce agricultural surpluses that result from price floors. One such attempt was a program that paid farmers to reduce the amount of land they devoted to planting crops subject to price floors. What was the reason for the failure of this program?