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## In 2010, many unskilled workers in the United States earned

Paper help Economics In 2010, many unskilled workers in the United States earned

# In 2010, many unskilled workers in the United States earned

In 2010, many unskilled workers in the United States earned the Federal minimum wage of \$7.25 per ho… Show more In 2010, many unskilled workers in the United States earned the Federal minimum wage of \$7.25 per hour. By contrast, average earnings in 2010 were about \$17.00 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned \$165.00 or more per hour. a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the Federal minimum wage? _________times more productive than a minimum wage worker How many times more productive was a \$165-per-hour lawyer compared to a worker earning minimum wage? ____________times more productive than a minimum wage worker b. Assume that there are 20 minimum-wage workers in the economy for each \$165-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a \$165-per-hour lawyer earn a week? \$_________per week How much does a minimum-wage worker earn a week? \$___________per week c. Suppose that the government pairs each \$165-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyerâ€™s income each week and distributes it equally among the 20 minimum wage workers with whom each lawyer is paired, how much will each of those minimum-wage workers receive each week? \$__________each week If we divide by the number of hours worked each week, how much does each minimum-wage workerâ€™s weekly transfer amount to on an hourly basis? \$_______per hour d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much per week will each minimum-wage worker receive? \$_______per week How much is that on an hourly basis? \$________per hour • Show less

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