If the Minimum Wage Applies to One Sector (The Covered

question 11

Multiple Choice

If the minimum wage applies to one sector (the covered sector) but not another sector (the uncovered sector) , an increase in the minimum wage in the covered sector is likely to result in which of the following?

• A) greater employment in the covered sector
• B) less employment in the uncovered sector
• C) a lower wage in the covered sector
• D) a lower wage in the uncovered sector
• E) workers willingly leaving the covered sector for the uncovered sector in search of higher wages

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