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Bu224 Microeconomics

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Kaplan University

Research Topic Unit 2 – Part II

BU224 – 02: Microeconomics

December 17, 2013

Unit 2 Part II
The topic that I have selected to research and write about is Evaluating Legal Prices. I found some of the most intriguing information concerning minimum wage. How does the government determine the price? Where it originated from? What is the purpose of the legal price and the extent to which it achieves its purpose for an individual who may be going through a hardship making a low grade of money? One of the things that I want to focus on is understanding the reason for each state having different minimum wages and why they are so different.
Of course we all know that minimum wage is the lowest rate at which a worker can legally get paid. In the United States, as opposed to many other countries, the minimum wage is pegged to an hourly wage. What are some of the exemptions for certain occupations and industries? I would not think that they work any less than any other employee in any other state, town, or city.
Minimum wage laws set legal minimums for the hourly wages paid to certain groups of workers. In the United States, amendments to the Fair Labor Standards Act have increased the federal minimum wage from $.25 per hour in 1938 to $5.15 in 1997, I found this astonishing as I was reading different news topics, articles on the web and of course all types of information under the US government site concerning this topic.
Most economists believe that minimum wage laws cause unnecessary hardship for the very people they are supposed to help. I would to find out why they think this way. Of course they say the reason is simple: although minimum wage laws can set wages, they cannot guarantee jobs.
I would like to reveal that if this being the case with minimum wages, how does it affect the low skilled workers. Does it force…...

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