Economists generally agree that sufficiently high minimum wage laws:
A) cause unemployment.
B) help lower the structural unemployment rate.
C) decrease the labour force participation rate.
D) make an opportunity for discouraged workers.

Question

Quizplus · Accepted Answer

Economists generally agree that minimum wage laws cause unemployment, particularly among low-skilled workers who may not be worth the new, higher minimum wage to employers. This can result in employers reducing the number of workers, decreasing hours, or outsourcing jobs to other countries.

Economists Generally Agree That Sufficiently High Minimum Wage Laws