Question 1:
"A higher minimum wage means some low wage workers will get fired because there will be less money available for labor costs. An international minimum wage, scaled according to the working conditions and cost of living in a particular country, would allow local workers to benefit without significant trade disruptions.” Discuss this statement and explain why the demand curve is apt to be horizontal in the unskilled labor market.
Question 2:
What are the major preconditions of a perfectly competitive market? Provide examples to illustrate your points.