Week 5 eco204 discussions

Prior to beginning work on this discussion, read Jared Bernstein’s article, Amazon’s Raise: Unequivocally Good News.

Link to article: https://www.journalgazette.net/opinion/columns/20181007/amazons-raise-unequivocally-good-news

Based on the article’s information and Chapter 12 in your textbook, respond to the following:

• Why is the demand for labor called a derived demand?
• In the labor market, what are the firm’s demand curve for labor and the workers’ supply curve of labor?
• How is a firm’s wage normally determined in the labor market?
• How could Amazon decide to raise its minimum wage to $15 per hour, despite the federal minimum wage being fixed at $7.25 per hour?
• What are positive and negative effects of Amazon raising its minimum wage to $15 per hour on its employees, total revenue, and other companies and their employees?

Your initial post should be a minimum of 300 words.

Discussion 2:

Prior to beginning work on this discussion, read Tim Worstall’s article, One Benefit of Nancy MacLean’s Democracy in Chains – Public Choice and Rent Seeking Popularised.

Link to article: https://www.forbes.com/sites/timworstall/2017/08/06/one-benefit-of-nancy-macleans-democracy-in-chains-public-choice-and-rent-seeking-popularised/#74841d776aca

Based on the article’s information and Chapter 14 in your textbook, especially Sections 14.1 and 14.2, respond to the following:

• What is the public choice idea or theory?
• Explain what rent seeking is.
• How can you combine the ideas of public choice and rent seeking?
• Choose one real-world example of combining public choice and rent seeking to evaluate.

Your initial post should be a minimum of 300 words.