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Extra Credit Assignment #1
ECON 2105 Principles of Macroeconomics
Name:
Answer the following three questions based on the resources listed below. I know it is a lot, but it
will help you understand more about neoclassical policies that matter to you. Also, feel free to
share your opinion or critique neoclassical viewpoints (you do not have to agree with them, but
you still need to know the grounds for their arguments.)
Question 1
Based on the two articles and the video below, explain why neoclassical economists oppose
minimum wage laws or any kind of regulation on wages. Then, what would be a better way that
workers can get paid more (not through an increase in minimum wages) according to
neoclassical economists?
https://fee.org/articles/the-case-for-abolishing-minimum-wage-laws/
Question 2
Based on the article and the video below, explain why social welfare programs lead workers to
letting go of opportunities for more salaries and promotions. And, what would be the two
alternatives that can prevent such perverse incentives and encourage workers to work more?
https://thehill.com/opinion/op-ed/245776-more-work-less-welfare
Question 3
Based on the two articles below, explain why neoclassical economists oppose government
regulations. What would be then a right kind of regulation? Also, does it mean we do not need
any government regulation?
https://www.usnews.com/opinion/economic-intelligence/2014/05/12/many-regulations-stifleentrepreneurs-and-small-businesses
https://www.usnews.com/opinion/economic-intelligence/articles/2018-01-03/true-regulatorypower-resides-with-consumers-not-the-government
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