Table 4-7
Table 4-7 shows the demand and supply schedules for labor market in the city of Pixley.
-Which of the following is not a consequence of minimum wage laws?
A) Low skilled workers are hurt because minimum wage reduces the number of jobs providing low skilled workers with training.
B) Employers will be reluctant to offer low-skill workers jobs with training.
C) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
D) Some workers benefit when the minimum wage is increased.

Question

Table 4-7
  Table 4-7 shows the demand and supply schedules for labor market in the city of Pixley.
-Which of the following is not a consequence of minimum wage laws?
A) Low skilled workers are hurt because minimum wage reduces the number of jobs providing low skilled workers with training. 
B) Employers will be reluctant to offer low-skill workers jobs with training. 
C) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. 
D) Some workers benefit when the minimum wage is increased.

Quizplus · Accepted Answer

Options A, B, and D are all consequences of minimum wage laws, but option C is not. Producers may have an incentive to offer non-wage benefits regardless of minimum wage laws as a way to attract and retain workers.

Table 4-7 Table 4-7 Shows the Demand and Supply Schedules