A minimum wage
A)increases the number of unskilled workers who are employed.
B)increases wages to all unskilled workers.
C)increases the wages paid to unskilled workers who are employed.
D)increases cyclical unemployment.

Question

Quizplus · Accepted Answer

A minimum wage increases the wages paid to unskilled workers who are employed, as employers are required to meet the minimum wage threshold. However, it may not increase the number of unskilled workers who are employed (A), nor does it necessarily increase wages to all unskilled workers (B). Additionally, a minimum wage may have some impact on cyclical unemployment (D), as it may increase labor costs for employers and potentially lead to layoffs or decreased hiring.

A Minimum Wage