Puerto Rico's Minimum Wage Increased Dramatically as Result of the 1938

question 277

Multiple Choice

Puerto Rico's minimum wage increased dramatically as result of the 1938 Fair Labor Standards Act. This legislation:

• A) caused many Puerto Rican firms to go bankrupt, sending unemployment soaring.
• B) is a case in point that minimum wage increases have different effects in non-capitalist countries.
• C) provided a counterexample to the claim that minimum wage increases cause unemployment.
• D) had little effect on Puerto Rican labor markets because the minimum wage increase was quite modest.

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