A substantial increase in the legal minimum wage will tend to
A) expand employment by increasing purchasing power and hence the demand for output.
B) improve the position of the least skilled persons in the labor force.
C) reduce employment by raising the cost of hiring some employees above their expected worth to potential employers.
D) reduce the wages of highly skilled and highly paid employees.
C
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In empirical analyses of factors that help explain wages,
a. effort and ability are not likely to contribute to large differences in wages in the U.S. economy. b. economists typically find that measurable factors explain less than half of the variation in wages. c. economists typically find few factors that are not explicitly measurable. d. unmeasurable influences on wage differences are found to be quite small.
The prediction of the overthrow of capitalism was made by
A. John Maynard Keynes. B. Mikhail Gorbachev. C. Holden Caufield. D. Karl Marx.