Critics of the Minimum Wage Argue That as an Antipoverty

question 107

Multiple Choice

Critics of the minimum wage argue that as an antipoverty device, it is "poorly targeted." By this they mean that

• A) the minimum wage only applies to a small percentage of the labor force.
• B) many who benefit from the minimum wage are teenagers or not poor.
• C) the government has been unable to enforce the minimum wage.
• D) the average level of wages in the economy is considerably higher than the minimum wage.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, leading to competition based on quality, price, and marketing.

Long-Run Cost Curve

A graph showing the lowest cost at which a firm can produce any given level of output in the long run, when all factors of production are variable.

Average Total Cost

The total cost of production (including fixed and variable costs) divided by the number of units produced, indicating the per-unit cost of production.