Which of the Following Is a Consequence of Minimum Wage

question 210

Multiple Choice

Which of the following is a consequence of minimum wage laws?

• A)Low skilled workers benefit because minimum wage increases the number of jobs providing low skilled workers with training.
• B)Employers will be reluctant to offer low-skill 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)All workers benefit when the minimum wage is increased.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency, demand deposits, and other liquid instruments.

Velocity of Money

The rate at which money circulates or is exchanged in an economy, used to indicate the economic activity level.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, serving as an indicator of inflation.

Equation of Exchange

An economic formula representing the relationship between the money supply, the velocity of money, the price level, and the number of transactions in an economy.