Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 20 - Income Inequality, Poverty, and Discrimination - Problems - Page 432: 3a

Answer

3.03 times, and then 13.79 times.

Work Step by Step

The increase in productivity is equal to the comparison wage over the minimum. So, the average worker is approximately $\frac{$22}{$7.25} \approx$ 3.03 times more productive than one earning minimum wage. Also, a ${$100}$-per-hour lawyer is $\frac{$100}{$7.25} \approx$ 13.79 times more productive than one earning minimum wage.
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