A binding minimum wage
A)affects employees but not employers.
B)lowers the productivity of workers.
C)raises the cost of labor to firms.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A binding minimum wage will increase the cost of labor for firms as they are required to pay their employees at least the minimum wage set by law. This increase in cost may lead to higher prices for consumers or a decrease in employment opportunities offered by firms. However, it does not necessarily affect the productivity of workers or employers themselves.

A Binding Minimum Wage