Which of the Following Is Not a Consequence of Minimum

question 205

Multiple Choice

Which of the following is not a consequence of minimum wage laws?

• A)Low-skilled workers are hurt because minimum wage reduces the number of jobs providing low-skilled workers with training.
• B)Employers will be reluctant to offer low-skilled workers jobs with training.
• C)Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
• D)Some workers benefit when the minimum wage is increased.

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Definitions:

Contract Curve

In an Edgeworth Box diagram, the curve that represents all the Pareto efficient allocations between two consumers.

Pareto Optimal

A situation of distribution where improving the condition of any individual necessitates the detriment of at least another individual.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, meaning all buyers and sellers are satisfied at the current price level and quantity of goods.

Feasible Allocation

is a concept in economics that refers to the division of resources or goods among various uses or people in a way that is possible given the resources available.