When the U.S.minimum wage was first passed in 1938,only 56% of workers were employed in covered firms.The incomplete coverage suggests that

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The incomplete coverage of the minimum wage suggests that the general-equilibrium analysis would predict a decrease in wages in uncovered sectors, as employers in those sectors will likely face competition from covered firms who have to pay higher wages. This is known as the "spillover effect" of minimum wage increases. The other answer choices are not accurate in describing the implications of incomplete coverage of the minimum wage.