Economists generally agree that sufficiently high minimum wage laws:
A) cause unemployment.
B) help lower the structural unemployment rate.
C) decrease the labor force participation rate.
D) make an opportunity for discouraged workers.

Question

Quizplus · Accepted Answer

Economists generally agree that sufficiently high minimum wage laws cause unemployment. This is because employers may not be able to afford to pay their workers the higher wage and may have to lay off some workers or reduce their hours. This results in an overall decrease in employment opportunities.

Economists Generally Agree That Sufficiently High Minimum Wage Laws