Question

pregunta 1 (2 puntos)
every time minimum wage is increased, all of these things happen except
○ a some people lose their jobs
○ b some people make more money
○ c some people get their hours cut
○ d some people are brought out of poverty

pregunta 2 (2 puntos)
a change in quantity supplied (qs) is due to a change in ____ only.
○ a income
○ b production
○ c price
○ d input costs

Explanation:

Pregunta 1

To solve this, we analyze the effects of minimum wage increase:

• Option a: Firms may cut jobs (hire fewer or lay off) due to higher labor costs, so this happens.
• Option b: Workers earning minimum wage will see a pay increase, so this happens.
• Option c: Employers might reduce hours to control costs, so this happens.
• Option d: While some may benefit, it's not guaranteed that all minimum - wage workers are brought out of poverty (e.g., if they lose hours/jobs, or if their overall income still isn't enough). Also, the statement says "ALL of these things happen EXCEPT", and the other options are more direct, expected effects, while poverty reduction isn't an absolute, guaranteed outcome of a minimum wage increase.

• The law of supply states that a change in quantity supplied (Qs) is caused by a change in the price of the good itself, holding other factors constant (like input costs, technology, number of sellers which affect supply, not quantity supplied).
• Option a: Income affects demand (for normal/inferior goods), not quantity supplied.
• Option b: Production is a broad term; a change in production doesn't directly define quantity supplied change. Quantity supplied is about how much is offered at a given price.
• Option c: Price (of the good) changes lead to a movement along the supply curve, i.e., a change in quantity supplied.
• Option d: Input costs affect the supply (shift the supply curve), not the quantity supplied (movement along the curve).

Answer:

d. some people are brought out of poverty

Pregunta 2