Asked by Bradley Bennett on Jun 04, 2024
Verified
If the minimum wage is set too high,in some labor markets we can expect to see:
A) a shortage of labor.
B) an increase in on-the-job training.
C) a surplus of labor.
D) a decline in wage costs.
Minimum Wage
The lowest legally permissible wage that employers can pay their employees.
Surplus Of Labor
A situation where the supply of labor exceeds the demand, often resulting in unemployment or downward pressure on wages.
- Assess the influence of minimum wage policies on job availability, wage levels, and the overall labor market.
Verified Answer
AR
Arior RichardsonJun 09, 2024
Final Answer :
C
Explanation :
When the minimum wage is set too high, employers will not be able to afford to hire as many workers as they need or want, leading to a surplus of labor. This results in increased competition for jobs, lower wages and reduced hours for those who do find work.
Learning Objectives
- Assess the influence of minimum wage policies on job availability, wage levels, and the overall labor market.