Empirical Estimates of the Short-Run Employment Effects of Minimum Wage

question 21

Multiple Choice

Empirical estimates of the short-run employment effects of minimum wage increases

• A) have produced a consensus that teen employment will fall by almost 10% for every 10% increase in the minimum wage.
• B) are very low, partly because it takes a long time for employers to adjust fully to changes in the minimum wage.
• C) are very high, partly because it takes a long time for employers to adjust fully to changes in the minimum wage.
• D) have produced a consensus that teen employment will not fall at all when the minimum wage is increased by 10%.

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Definitions:

Increase

A rise in the amount, size, or number of something.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 for perfect equality to 1 for complete inequality.

Well-Being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Equality

The state or quality of being equal, especially regarding status, rights, and opportunities without discrimination on any basis.