-An increase in the minimum wage to $15 per hour would lead to
A) a decrease in search activity for many workers.
B) no change in unemployment.
C) no change in employment.
D) a decrease in unemployment.
E) an increase in search activity for many workers.

Question

-An increase in the minimum wage to $15 per hour would lead to
A) a decrease in search activity for many workers. 
B) no change in unemployment. 
C) no change in employment. 
D) a decrease in unemployment. 
E) an increase in search activity for many workers.

Quizplus · Accepted Answer

An increase in the minimum wage can lead to more people entering the labor market to search for jobs, thus increasing search activity.

-An Increase in the Minimum Wage to $15 Per Hour