A minimum wage mandated by the government will result in an increase in:
A)the supply of workers to the uncovered sector.
B)the wage rate in the uncovered sector.
C)employment opportunities in the covered sector.
D)the demand for workers in the covered sector.

Question

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage in the covered sector can lead to a surplus of labor, causing some workers to seek employment in the uncovered sector, thus increasing the supply of workers there.

A Minimum Wage Mandated by the Government Will Result in an Increase