Those that lose from an increase in the minimum wage are
A)all workers.
B)those workers who keep their jobs.
C)workers that are laid off.
D)consumers who pay lower prices for goods.

Question

Quizplus · Accepted Answer

When there is an increase in the minimum wage, employers may choose to lay off workers in order to compensate for the higher labor costs. Therefore, workers that are laid off are the ones who lose from the increase in the minimum wage. Option A and D are incorrect because not all workers are affected and consumers may actually benefit from higher wages as it may boost consumer spending. Option B is partially correct, as some workers may keep their jobs, but it does not capture the full picture of those who lose their jobs.

Those That Lose from an Increase in the Minimum Wage