ECON 101 Lecture Notes - Lecture 2: Seat Belt
Document Summary
Andres, 16, actually works at a grocery store after school. Suppose the state legislature passes a law stating that an individual must be paid the minimum dollar wage for doing a job is an hour. The goal of the lawmakers in passing the law is to help people like andres receive more money. Will the law on an hour have the expected effect. The grocery store manager will not find continuing to hire andres worthwhile if she has to pay him an hour. In other words, andres may have hourly work at but not an hour. Let"s examine compulsory seatbelt laws as another example, to see if they have any adverse consequences. States have legislation which requires drivers to wear seatbelts. The intended result is to reduce the number of car deaths by making drivers more likely to survive an accident.
