Signature Assignment: ECON 2301/2302
Instruction: Write in a concise and readable form, using proper syntax and grammar. Use proper economic/business terminology that is understood by anyone with limited economic/business knowledge. Proofread your assignment at least 3 times before submitting a copy for grading.
Step 1. Start with the data for the variables listed below, Table 1). Provided by Your Professor.
Enter the data into the K-12 Chart Making tool (www.bls.gov/k12/students/chart-maker) to generate the 3 graphs required for the signature assignment. Follow the format below to organize the signature assignment.
I. Topic. Analysis to Determine If the Annual Earnings of aMinimum Wage Worker will Support a Household of 2 and a Household of 4 above the Poverty Level Income Threshold Established by the Bureau of Labor Statistics?
II. Introduction- Provide a written explanation of the law that established the federal minimum wage, including the year established, and the socio-economic population targeted.
III. Insert Table 1 into the paper:
Table 1. Variables and Definitions_____________________________________________________
Purchasing Power is percent change in real minimum wage from a previous year.
Inflation is percent change in CPI from a previous year.
INC1PCTRH2 = Income 1 expressed as percentage of poverty level income for a household of 2.
INC1PCTRH4 = Income 1 expressed as percentage of poverty level income for a household of 4.
INC2PCTRH2 = Income 2 expressed as percentage of poverty level income for a household of 2.
INC2PCTRH4 = Income 2 expressed as percentage of poverty level income for household of 4.
Income 1 (INC1) = real minimum wage times 40 hours per week, 50 weeks per year.
Income 2 (INC2) = real minimum wage times 50 hours per week, 50 weeks per year
IV. Answer Question 1. Did the purchasing power of the minimum wage keep up with inflation over the study period? Insert graph 1 into your paper and reference it in your answer.In complete sentences, explain the number of years when purchasing power was equal to or above inflation and from an economic perspective, explain when purchasing power will be negative.
V. Answer Question 2. Will income 1 (INC1PCTRH2) support a household of 2 and (INC1PCTRH4) household of 4 above the poverty level income threshold established by the Bureau of Labor Statistics? Insert graph 2 into your paper and reference it in your answer. Values of 1 or greater would support a household above the poverty level income threshold. Values less than 1 (example .77) would not support a household above the poverty level income threshold. In complete sentences, explain the number of years when income 1 will support a household of 2 and a household of 4 above the poverty level.
VI. Question 3. Will income 2 INC2PCTRH2) support a household of 2 and (INCPTRH4) a household of 4 above the poverty level income threshold reported by the Bureau of Labor Statistics? Values of 1 or greater would support a household above the poverty level threshold. Value less than 1 (example .77) would not support a family above the poverty levelthreshold. Insert graph 3 into your paper and reference it in your answer. In complete sentences, explain the number of years when income 2 will support a household of 2 and a household of 4 above the poverty level.
VII. Summary and Conclusion. In a short paragraph, summarize your answers to questions #1, #2, and #3 above.
