An Employer Has Work That Can Be Done in the Same

question 159

Multiple Choice

An employer has work that can be done in the same time by one high-skilled worker paid $50 an hour or by eight low-skilled workers paid $5 an hour each and the minimum wage is $7.25 an hour. In this scenario, who benefits from the minimum wage, the high-skilled worker or the low-skilled workers? (Hint: Who would you hire for the job?)

• A) the high-skilled worker
• B) the low-skilled workers
• C) both benefit equally
• D) It is impossible to say who benefits more.

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