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Suppose employers and workers are risk-neutral, and congress is about to enact the $12 per hour minimum wage. congressional staff economists have urged legislators to consider adopting an earned-income tax credit instead. suppose neither workers nor employers would support that proposal unless the expected value of each party’s economic surplus would be at least as great as under the minimum wage. describe an earned-income tax credit.
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Suppose employers and workers are risk-neutral, and congress is about to enact the $12 per hour mini...
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