An effective minimum wage
A) imposes a price ceiling on the wages of various categories of low-skill workers.
B) increases the demand for low-skill workers.
C) makes it easier for low skill workers to find jobs.
D) increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.

Question

Quizplus · Accepted Answer

An effective minimum wage sets a floor on wages, which can increase earnings for some workers but may also lead to reduced employment opportunities as employers may hire fewer workers or reduce training due to higher labor costs.

An Effective Minimum Wage