Question 1 Suppose that a 5% increase in the minimum wage causes a 5% reduction in employment

Question 1

Suppose that a 5% increase in the minimum wage causes a 5% reduction in employment. How would this affect employers and how would it affect workers? In your opinion, would this be a good policy?  Explain in detail.

Question 2 

In this episode, we are exposed to the many nations who were forced to reform or liberalize their economies from a socialist political economy to a capitalist political economy.  What three nations endured the most agony then and how are they today?

What is required to sustain the free market system?  Think of the many stakeholders engaged in a market system.

Remember, this is a twenty year old masterpiece whose history is likely new to many of you.  Looks like things don't really change - do you agree?