Asked by Erica Doherty on Jun 24, 2024
Verified
The minimum wage is a price ____,which tends to ___ the employment of unskilled workers.
A) ceiling;decrease
B) ceiling;increase
C) floor;decrease
D) floor;increase
Minimum Wage
The lowest legal hourly pay for employees, set by government law.
Unskilled Workers
Workers who possess no special skills or training and typically perform simple tasks that require minimal prior experience.
- Familiarize with the effects that minimum wage mandates have on work force levels.
Verified Answer
JB
JAMES BAILEYJun 29, 2024
Final Answer :
C
Explanation :
The minimum wage is a price floor - a legal minimum price that employers are required to pay their workers. By setting a floor price above the market equilibrium wage rate, the minimum wage tends to increase the cost of labor for employers and decrease the demand for low-skilled workers, resulting in potential job losses or reduced work hours.
Learning Objectives
- Familiarize with the effects that minimum wage mandates have on work force levels.