A conservative critic of government programs has written, Governments know how to do one thing well. They

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A conservative critic of government programs has written, "Governments know how to do one thing well. They know how to create shortages and surpluses." Explain this quotation using examples like the minimum wage or interest-rate ceilings. Show graphically that if the demand for unskilled workers is price-elastic, a minimum wage will decrease the total earnings (wage times quantity demanded of labor) of unskilled workers.
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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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