A minimum wage law is predicted to produce
A)higher unemployment among young and inexperienced workers.
B)higher unemployment among all workers.
C)lower unemployment among young and inexperienced workers.
D)increased hiring of young and inexperienced workers.

Question

Quizplus · Accepted Answer

A minimum wage law puts a price floor on labor, meaning employers cannot pay workers below a certain wage. This makes it more expensive to hire workers, particularly those with less experience or skills. As a result, employers may choose to hire fewer workers, resulting in higher unemployment among young and inexperienced workers. Overall, this may lead to higher unemployment among all workers, but the effect is likely to be most pronounced among inexperienced workers.

A Minimum Wage Law Is Predicted to Produce