Which of the Following Is a Consequence of Minimum Wage

question 80

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-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)All workers benefit when the minimum wage is increased.

---

Definitions:

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically help stabilize an economy by reducing the severity of economic fluctuations without additional government intervention.

Disposable Income

The residual financial power of households for savings and consumption post the subtraction of income taxes.

Inflationary Pressure

Situations where upward trends in prices are predicted due to factors such as increased production costs or rising demand.

Classical Economists

Refers to economists from the 18th and early 19th centuries who focused on economic growth, free markets, and the importance of limited government intervention.