Suppose that because the government increases the minimum wage,employers choose to hire fewer workers.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of an indirect effect because the increase in the minimum wage leads to a decrease in the number of workers hired. It is not the intended or direct effect of the policy, but rather an unintended consequence. It is also not a desired outcome as it leads to fewer job opportunities for workers.

Suppose That Because the Government Increases the Minimum Wage,employers Choose