For a mandated benefit to decrease total employment, demand would have to

Question

Quizplus · Accepted Answer

A mandated benefit that shifts labor demand down more than labor supply will result in a decrease in total employment. This is because employers are less willing to hire workers at the higher wage rate due to the additional cost of the mandated benefit, while workers are willing to work at the higher wage rate with the added benefit. This creates a surplus of labor, resulting in a decrease in total employment.

For a Mandated Benefit to Decrease Total Employment, Demand Would