n part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole n cated. e that wage differences are caused solely by differences in productivity, how many times more produ er than a worker being paid the federal minimum wage? es more productive was a $100-per-hour lawyer compared to a worker earning minimum wage? at there are 20 minimum wage workers in the economy for each $100-per-hour lawyer. Also assume the wage workers work the same number of hours per week. If everyone works 40 hours per week, how er earn in a week?
n part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole n cated. e that wage differences are caused solely by differences in productivity, how many times more produ er than a worker being paid the federal minimum wage? es more productive was a $100-per-hour lawyer compared to a worker earning minimum wage? at there are 20 minimum wage workers in the economy for each $100-per-hour lawyer. Also assume the wage workers work the same number of hours per week. If everyone works 40 hours per week, how er earn in a week?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
5
![In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average
earnings in 2018 were about $27 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 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 $100-per-hour lawyer compared to a worker earning minimum wage?
b. Assume that there are 20 minimum wage workers in the economy for each $100-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 $100-
per-hour lawyer earn in a week?
How much does a minimum wage worker earn a week?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F510422a1-7633-4f0c-8ba8-dce0185f1314%2F0b6acc00-c73e-413a-80f8-029ed1c805f5%2Fnx7ael_processed.png&w=3840&q=75)
Transcribed Image Text:In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average
earnings in 2018 were about $27 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 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 $100-per-hour lawyer compared to a worker earning minimum wage?
b. Assume that there are 20 minimum wage workers in the economy for each $100-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 $100-
per-hour lawyer earn in a week?
How much does a minimum wage worker earn a week?
![c. Suppose that the government pairs each $100-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?
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: Round your answer to 2 decimal places.
d. Suppose the government taxes each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers
with whom each lawyer is paired. How much per week will each minimum-wage worker receive?
How much is that on an hourly basis?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F510422a1-7633-4f0c-8ba8-dce0185f1314%2F0b6acc00-c73e-413a-80f8-029ed1c805f5%2F8eeohlq_processed.png&w=3840&q=75)
Transcribed Image Text:c. Suppose that the government pairs each $100-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?
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: Round your answer to 2 decimal places.
d. Suppose the government taxes each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers
with whom each lawyer is paired. How much per week will each minimum-wage worker receive?
How much is that on an hourly basis?
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