Suppose you were to hear a politician defend the minimum wage on the grounds that workers would be happier and more productive with a higher minimum wage, you would know this person to be relying on the ____ argument.
A)macroeconomic
B)elasticity
C)work effort
D)consumer and producer surplus

Question

Quizplus · Accepted Answer

The argument presented by the politician is related to the work effort theory, which suggests that higher wages motivate workers to work harder and be more productive. This theory is often associated with discussions around the minimum wage and its impact on the labor market. The other options (macroeconomic, elasticity, consumer and producer surplus) do not directly relate to the argument presented by the politician.

Suppose You Were to Hear a Politician Defend the Minimum