Not only do both wage subsidies and minimum wages increase wages, but:
A) they also increase employment.
B) they also reduce employment.
C) subsidies increase employment, whereas minimum wages reduce it.
D) subsidies reduce employment, whereas minimum wages increase it.

Question

Quizplus · Accepted Answer

Wage subsidies can increase employment by lowering the cost of hiring for employers, while minimum wages can reduce employment by increasing labor costs, potentially leading to fewer jobs.

Not Only Do Both Wage Subsidies and Minimum Wages Increase