What is a minimum wage? What are the effects of a minimum wage ...

[dbose]

What is a minimum wage? What are the effects of a minimum wage set below the equilibrium wage rate?
 
  What will be an ideal response?

Question 2

Is a sailboat purchased in Victoria, British Columbia, a private good or a public good?
 
  What will be an ideal response?

[zenzy]

Answer to Question 1

A minimum wage is a regulation that makes it illegal to pay or receive a wage rate lower than a specified level. If a minimum wage is set below the equilibrium wage, the minimum wage has no effect because it does not make the equilibrium wage rate illegal.

Answer to Question 2

The sailboat is a private good. The sailboat has none of the characteristics of a public good. First, people can easily be excluded from using the boat. Basically, the only people allowed on the boat are the people the owner allows on the boat. Second, the owner's use of the boat prevents other people from simultaneously using the boat. That is, the owner's consumption of the boat decreases the quantity available for other consumers.

[dbose]

Thanks for the timely response, appreciate it

[kilada]

Wow, this really help