Which of the following is the most likely result of an increase in the minimum wage?
A) An increase in the employment of unskilled workers.
B) A decrease in the number of workers seeking minimum wage jobs.
C) An increase in the demand for unskilled workers.
D) A decrease in the employment of unskilled workers.

Question

Quizplus · Accepted Answer

An increase in the minimum wage would lead to a decrease in the employment of unskilled workers as it becomes more expensive for employers to hire them. They may choose to substitute with skilled workers or invest in automation technology, which would ultimately result in fewer job opportunities for unskilled workers. Choices A, B, and C are unlikely outcomes of an increase in the minimum wage.

Which of the Following Is the Most Likely Result of an Increase