If minimum wage legislation does not cause unemployment,then:

Question

Quizplus · Accepted Answer

If minimum wage legislation does not cause unemployment, then those who work for minimum wage will benefit as they will receive higher wages without losing their jobs. Firms may experience lower profits, but since there is no increase in unemployment, there is no negative impact on the economy. Additionally, minimum wages may be nonbinding in some cases, meaning that firms are already paying their workers more than the minimum wage. Therefore, all of these statements are true.

If Minimum Wage Legislation Does Not Cause Unemployment,then