-One result of the minimum wage is
A) an increase in employment among poor and unskilled workers.
B) a black market for labour that pays more than the minimum wage.
C) a black market for labour that pays less than the minimum wage.
D) a decrease in unemployment among poor and unskilled workers.
E) decreased job-search activity.

Question

-One result of the minimum wage is
A) an increase in employment among poor and unskilled workers. 
B) a black market for labour that pays more than the minimum wage. 
C) a black market for labour that pays less than the minimum wage. 
D) a decrease in unemployment among poor and unskilled workers. 
E) decreased job-search activity.

Quizplus · Accepted Answer

A minimum wage set above the equilibrium wage can lead to a surplus of labor (unemployment), prompting some employers to offer jobs at lower than the legal minimum wage, thus creating a black market for labor.

-One Result of the Minimum Wage Is