Many economists are critical of the minimum wage because they believe that it
A) hurts the efforts of labor unions.
B) reduces the number of available job opportunities.
C) conflicts with policies designed to equalize the distribution of income.
D) causes labor shortages in affected markets.

Question

Quizplus · Accepted Answer

Many economists argue that increasing the minimum wage leads to a reduction in the demand for labor, as employers may choose to hire fewer workers or reduce their hours to compensate for the increased wage costs. This can lead to a decrease in the number of available job opportunities, particularly for low-skilled workers.

Many Economists Are Critical of the Minimum Wage Because They