(Figure: Wage Subsidy) Consider the use of wage subsidiesversus the minimum wage. Employment with a wage subsidy is:________, versus employment with an $8 minimum wage is:________.
A)180; 120
B)120; 180
C)150; 150
D)180; 180

Question

(Figure: Wage Subsidy) Consider the use of wage subsidiesversus the minimum wage. Employment with a wage subsidy is:________, versus employment with an $8 minimum wage is:________.
A)180; 120 
B)120; 180 
C)150; 150 
D)180; 180

Quizplus · Accepted Answer

According to the graph, employment with a wage subsidy is at 180, while employment with an $8 minimum wage is at 120. Therefore, using wage subsidies would lead to higher employment levels than using the minimum wage.

(Figure: Wage Subsidy) Consider the Use of Wage Subsidiesversus the Minimum