An employer has work that can be done in the same time by one high-skilled worker paid $50 an hour or by eight low-skilled workers paid $5 an hour each and the minimum wage is $7.25 an hour. In this scenario, who benefits from the minimum wage, the high-skilled worker or the low-skilled workers? (Hint: Who would you hire for the job?)

Question

Quizplus · Accepted Answer

The minimum wage makes hiring low-skilled workers more expensive ($7.25 x 8 = $58) than hiring one high-skilled worker ($50), so the high-skilled worker benefits as they are more likely to be hired.

An Employer Has Work That Can Be Done in the Same