Which of the Following Statements About Minimum-Wage Laws Are True

question 12

Multiple Choice

Which of the following statements about minimum-wage laws are true?
Minimum wages:
(i) force a market imbalance between the supply and demand for labour
(ii) increase the efficiency of labour markets
(iii) are most effective at alleviating poverty when labour demand is highly elastic

• A)(i) only
• B)(i) and (ii)
• C)(i) and (iii)
• D)(ii) and (iii)