Most economists are in agreement that minimum wages cause unemployment and make some people worse off as a result. However, does that imply that it makes everyone worse off? Who might benefit?
What will be an ideal response?
Clearly people who are still fortunate enough to hold on to their jobs will experience a rise in their income. Also, minimum wage laws typically cover work done by workers who have lower levels of skill because of youth, inexperience and lack of education and training. The higher wages that they earn makes other workers labor demand rise if it is considered as a substitute for low skilled minimum-wage-protected workers.
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When government provides a good with an external benefit, to attain efficiency the price paid by consumers is set equal to the
A) marginal private benefit at the efficient level of output. B) marginal private cost at the efficient level of output. C) amount paid by taxpayers. D) market-determined price. E) marginal external benefit at the efficient level of output.
The CPI is the average price of all goods and services produced within the economy
Indicate whether the statement is true or false