All of the following are arguments against minimum wage laws except
A)minimum wage laws do not reduce poverty but reduces social welfare instead.
B)minimum wage laws contributes to contributes to federal costs of transfer programs.
C)minimum wage laws tend to discourage firms from investing in training.
D)minimum wages tend to provide incentives to businesses to invest in capital substitutes.

Question

Quizplus · Accepted Answer

B) is an argument in favor of minimum wage laws, not against. It suggests that higher minimum wages could reduce the need for federal transfer programs (like welfare) because workers would be earning more, potentially reducing the number of people who need these programs. Choices A, C, and D are arguments against minimum wage laws, citing negative impacts on social welfare, training investment, and encouraging automation or capital investment over hiring workers, respectively.

All of the Following Are Arguments Against Minimum Wage Laws