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b. Assume that there are 20 minimum-wage workers in the economy for each $130-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $130- per-hour lawyer earn a week? $ How much does a minimum-wage worker earn a week? $ c. Suppose that the government pairs each $130-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer's income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much more will each of those minimum-wage workers receive each week? Instructions: Enter your answer rounded to 2 decimal places. $ If we divide by the number of hours worked each week, how much does each minimum-wage worker's weekly transfer amount to on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $ d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much more will each of those minimum-wage workers receive each week? (Assume that the lawyers continue to work.) $ How much is that on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $

b. Assume that there are 20 minimum-wage workers in the economy for each $130-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $130- per-hour lawyer earn a week? $ How much does a minimum-wage worker earn a week? $ c. Suppose that the government pairs each $130-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer's income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much more will each of those minimum-wage workers receive each week? Instructions: Enter your answer rounded to 2 decimal places. $ If we divide by the number of hours worked each week, how much does each minimum-wage worker's weekly transfer amount to on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $ d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much more will each of those minimum-wage workers receive each week? (Assume that the lawyers continue to work.) $ How much is that on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a given year, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in that same year were about $26 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $130 or more per hour. Instructions: In part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole number unless otherwise indicated. a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage? How many times more productive was a $130-per-hour lawyer compared to a worker earning minimum wage? b. Assume that there are 20 minimum-wage workers in the economy for each $130-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $130- per-hour lawyer earn a week? $ How much does a minimum-wage worker earn a week? $ c. Suppose that the government pairs each $130-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer's income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much more will each of those minimum-wage workers receive each week? Instructions: Enter your answer rounded to 2 decimal places. $ If we divide by the number of hours worked each week, how much does each minimum-wage worker's weekly transfer amount to on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $ d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much more will each of those minimum-wage workers receive each week? (Assume that the lawyers continue to work.) $ How much is that on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $
Transcribed Image Text:In a given year, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in that same year were about $26 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $130 or more per hour. Instructions: In part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole number unless otherwise indicated. a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage? How many times more productive was a $130-per-hour lawyer compared to a worker earning minimum wage? b. Assume that there are 20 minimum-wage workers in the economy for each $130-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $130- per-hour lawyer earn a week? $ How much does a minimum-wage worker earn a week? $ c. Suppose that the government pairs each $130-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer's income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much more will each of those minimum-wage workers receive each week? Instructions: Enter your answer rounded to 2 decimal places. $ If we divide by the number of hours worked each week, how much does each minimum-wage worker's weekly transfer amount to on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $ d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much more will each of those minimum-wage workers receive each week? (Assume that the lawyers continue to work.) $ How much is that on an hourly basis? Instructions: Enter your answer rounded to 2 decimal places. $
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