Demonstrate how a minimum wage affects the unskilled labor market. Is the labor market perfectly competitive? Can you find any examples of monopsonistic hiring? What would a minimum wage do in a...

Demonstrate how a minimum wage affects the unskilled labor market. Is the labor market perfectly competitive? Can you find any examples of monopsonistic hiring? What would a minimum wage do in a monopsonistic market? If a progressive income tax discourages additional work as income rises, what would a regressive tax do? Use the indifference curves and income constraints discussed in the Economic Insights to illustrate the effect on work when income taxes are reduced.