Critics of minimum-wage legislation argue that it
A) keeps inefficient producers in business.
B) reduces employment.
C) undermines incentives to work.
D) is deflationary.

Question

Quizplus · Accepted Answer

Critics of minimum-wage legislation argue that it reduces employment because employers may not be able to afford to pay their workers the mandated minimum wage and may either reduce their workforce or decrease their workers' hours to compensate. The other options are not commonly cited criticisms of minimum-wage legislation by critics.

Critics of Minimum-Wage Legislation Argue That It