! QUESTION 16Reflect for a moment on the Textbook's discussion of Just Price (set by religious authorities) versus changing market conoditions.After the Black Death (so named because of the black sores caused by the bubonic plague) killed half the population of Europe, there was a labor shortage.One aspect of that labor shortage was that workers - especially those who organized into guilds or associations -- had more power to command higher prices for their labor -- higher than the previous Just Price.In fact, many clerics angrily denounced workers for demanding higher wages at that time, demonstrating once again the intimate connection between the ruling elites of both the secular and religious authorities.We're seeing a new version of this phenomenon now: previous to the Covid-19 pandemic, many American workers struggled to command more than the Federal minumum wage of $7.25 per hour. Now because many workers are reluctant tore-enter the workforce out of fear for their personal safety, even fast-food restaurants, grocery stores, and other formerly low-paying employers are offering $15 or even $20 per hour. For-profit daycare providers are finding it difficult to attractand maintain trained workers even with the New York State minimum wage (for this area) of over $12.Critics of raising the Federal minimum wage (including all Republican members of Congress) argue that only the market and not government should determine wages.Proponents of a higher minimum wage - such as Senator Bernard Sanders, who proposes that the Federal minimum wage be raised from $7.25 per hour to $15 per hour - argue that the Federal minimum wage is set so low as to be "unjust."Could both arguments be partially correct? Choose not only the correct answer, but the best answer.O Yes, both are correct.O No, critics of a higher minimum wage are incorrect, because there is no such thing as a perfect market, and low wages in the marketplace do indeed reflect a government policy decision to suppress wages.O No, the complaint against "unjust" wages is wrong, because an efficient labor market will self-correct, without any government intervention whatsoever.O While it's interesting that the medieval Church notion of "just price" uses the same language and sentiment as "just" or "unjust" wages, the reality is that labor markets today are much more complicated. Government influences the laborsupply by increasing or decreasing immigration; investing in (or not investing in) worker training; and by supporting (or not supporting) childcare - whichdetermines the number ofin the workforce.Thus govdernment directly influences labor supply by mandating a minimum wage, whether low or high -- even though market conditions vary from region to region.

D. Option is correct Due to the minimum wages, it leads to the imbalance in the economy and it…

Reflect for a moment on the Textbook's discussion of Just Price (set by religious authorities) versus changing market conoditions. After the Black Death (so named because of the black sores caused by the bubonic plague) killed half the population of Europe, there was a labor shortage. One aspect of that labor shortage was that workers -- especially those who organized into guilds associations -- had more power to command higher prices for their labor -- higher than the previous Just Price. In fact, many clerics angrily denounced workers for demanding higher wages at that time, demonstrating once again the intimate connection between the ruling elites of both the secular and religious authorities. We're seeing a new version of this phenomenon now: previous to the Covid-19 pandemic, many American workers struggled to command more than the Federal minumum wage of $7.25 per hour. Now because many workers are reluctant to re-enter the workforce out of fear for their personal safety, even fast-food restaurants, grocery stores, and other formerly low-paying employers are offering $15 or even S20 per hour. For-profit daycare providers are finding it difficult to attract and maintain trained workers even with the New York State minimum wage (for this area) of over $12. Critics of raising the Federal minimum wage (including all Republican members Congress) argue that only the market and not government should determine wages. Proponents of a higher minimum wage - such as Senator Bernard Sanders, who proposes that the Federal minimum wage be raised from $7.25 per hour to $15 per hour - argue that the Federal minimum wage is set so low as to be "unjust." Could both arguments be partially correct? Choose not only the correct answer, but the best answer. O Yes, both are correct. O No, critics of a higher minimum wage are incorrect, because there is no such thing as a perfect market, and low wages in the marketplace do indeed reflect a government policy decision to suppress wages. O No, the complaint against "unjust" wages is wrong, because an efficient labor market will self-correct, without any government intervention whatsoever. O While it's interesting that the medieval Church notion of "just price" uses the same language and sentiment as "just" supply by increasing or decreasing immigration; investing in (or not investing in) worker training; and by supporting (or not supporting) childcare - which all by itself determines the number of women in the workforce. "unjust" wages, the reality is that labor markets today are much more complicated. Government influences the labor Thus govdernment directly influences labor supply by mandating a minimum wage, whether low or high -- even though market conditions vary from region to region.