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By Gary E. Clayton
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Extra info for Economics - Principles and Practices
Economists knew that scarcity was necessary for something to have value. Still, scarcity by itself could not fully explain how value is determined. Utility It turned out that for something to have value, it must also have utility, or the capacity to be useful and provide satisfaction. Utility is not something that is fixed or even measurable, like weight or height. Instead, the utility of a good or service may vary from one person to the next. One person may get a great deal of satisfaction Value Economists aren’t the only ones obsessed with value.
But the evidence, based on studies of the effects of past increases in both the federal and state minimum-wage levels, . . shows otherwise. Because the working poor spend everything they earn, every penny of a minimum-wage increase goes back into the economy, increasing consumer demand and adding at least as many jobs as are lost. 00 and increased worker morale. S. Department of Labor. 50 an hour will reduce job opportunities for those who need it most, new entrants to the job market with the least skills or experience.
Interpreting Cartoons 36. Critical Thinking Look at the cartoon below. How does the message of this cartoon relate to the concepts presented in this chapter? com 33. Persuasive Writing Research a recent school funding levy for your school district that was not approved. Find out what changes the school district had to implement to adjust to the reduced funding levels and reduced resources available to schools. Write a two-page paper in which you evaluate the choices. com What Is Economics? 29 $ DEBATES IN ECONOMICS Should the Minimum Wage Be Increased?