Asked by Andrew Kehler on May 07, 2024
Verified
Critics of minimum-wage legislation argue that it:
A) keeps inefficient producers in business.
B) reduces employment.
C) undermines incentives to work.
D) is deflationary.
Minimum-Wage Legislation
Laws set by governments to establish the lowest amount that employers can pay their workers per hour.
Deflationary
Pertaining to or causing a decrease in the general price level of goods and services, often leading to increased purchasing power of money.
- Examine the impacts of minimum wage regulations on employment levels, wage scales, and the labor market dynamics.
Verified Answer
DS
Deanndra StevensMay 10, 2024
Final Answer :
B
Explanation :
Critics argue that increasing the minimum wage reduces employment opportunities because employers may not be able to afford the higher wage and may choose to hire fewer workers or automate jobs instead. This can be particularly detrimental to small businesses or those in industries with low profit margins. The other options (A, C, and D) are not commonly cited criticisms of minimum-wage legislation.
Learning Objectives
- Examine the impacts of minimum wage regulations on employment levels, wage scales, and the labor market dynamics.