Economic Theory Week 4 Discussion Question, economics homework help
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Discussion Questions
1. Economic theory states that a wage set above the equilibrium will create a surplus of labor (unemployment). Are unions creating a surplus of labor? Explain your answer.
2. Entrepreneurs absorb the risk of starting and running a company. Is Kennedy right about allowing employers to set the wage and not the employee? Explain your answer.
3. Governor Mitch Daniels advocates that the government intervene less in business to promote jobs and ultimately economic growth. Instead, he argues to have government put factors in place that promote job growth such as lower taxes and more infrastructure. Is this an appropriate method to promote growth? Are there alternatives where the government can intervene that are more efficient than the market? Explain your answer.
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