The heart of the argument against an increase in the minimum wage is that
A)the net gain to workers is less than the loss to firms.
B)there is a net loss to workers.
C)there is a loss to firms.
D)there are workers who earn more than they are worth.

Question

Quizplus · Accepted Answer

The heart of the argument against an increase in the minimum wage is that the net gain to workers is less than the loss to firms. Proponents of this argument say that increasing the minimum wage would cause firms to cut jobs, reduce hours and/or benefits, and raise prices to compensate for the increased cost of labor. Ultimately, they argue that the net gain for workers is small or non-existent and that the costs of the policy outweigh the benefits.

The Heart of the Argument Against an Increase in the Minimum