Minimum wage brings about inefficiency:
A)because workers now fight for the better paying jobs.
B)because it is geared toward the poor.
C)because higher wages lead to letdown.
D)because labour is no longer put to its most productive uses.

Question

Quizplus · Accepted Answer

When minimum wage regulations are put in place, employers are required to pay a certain amount regardless of the employee's level of productivity. This can lead to a situation where an employee who is not producing as much as they are being paid for still remains employed. In order to compensate for the higher wages required by employees, employers may also reduce the number of workers they hire or become more selective in their hiring process. This can result in a decrease in the overall productivity of the workforce as it is no longer operating at its most efficient level.

Minimum Wage Brings About Inefficiency