An effective minimum wage ultimately means that:
A)some unskilled workers have a difficult time finding a job.
B)employers must encourage workers to apply for positions.
C)employers will have difficulty finding enough workers for their positions.
D)workers are generally guaranteed employment.

Question

Quizplus · Accepted Answer

An effective minimum wage means that the minimum wage is set at a level that is above the market equilibrium wage rate. This means that employers will have to pay their workers more than they would otherwise be willing to, which may lead them to hire fewer workers or use automation instead. Therefore, some unskilled workers may have a difficult time finding a job, especially if they lack experience or education.

An Effective Minimum Wage Ultimately Means That