______ in the minimum wage could discourage schooling investments by making education ______ attractive relative to work.
A) An increase;more
B) An increase;less
C) A decrease;more
D) A decrease;less
E) There is no causal relationship between the minimum wage and education.

Question

Quizplus · Accepted Answer

An increase in the minimum wage could make work more attractive relative to education by increasing the earnings of low-skilled workers, which could discourage them from investing in schooling. Conversely, a decrease in the minimum wage could make education more attractive relative to work, as low-skilled workers may be willing to sacrifice short-term earnings for the long-term benefits of education. Therefore, choice B is the best answer.

______ in the Minimum Wage Could Discourage Schooling Investments by Making