One Reason Why an Increase in the Minimum Wage May

question 111

Multiple Choice

One reason why an increase in the minimum wage may result in increased employment is that

• A)the government prohibits firms from laying-off affected workers
• B)the supply of labor sometimes falls as a result of the higher minimum wage
• C)all wages rises by the same percent that the minimum wage rises
• D)employers react to the higher minimum wage by substituting part-time jobs for full-time jobs
• E)employers react to the higher minimum wage by substituting full-time jobs for part-time jobs

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