Explain why low-skilled workers find that their employment opportunities are less with a minimum wage
What will be an ideal response?
A minimum wage set above the equilibrium wage rate decreases the quantity of labor demanded, so employment decreases with a minimum wage. This effect is particularly strong in the market for low-skilled labor, because it is low-skilled labor that is paid low wage rates. Thus it is low-skilled workers for whom the decrease in employment is severe.
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The return to entrepreneurship is known as
A) economic profit. B) normal profit. C) opportunity revenue. D) normal revenue. E) explicit profit.
For which of the following goods will the free rider problem arise?
a. Private golf course b. Cable television c. Privately owned apartment d. National defense e. Movie theatres
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?
What should happen to the equilibrium price and quantity in a market as a result of a tariff on imports?
A. Equilibrium price and quantity should both go down. B. Equilibrium price should go up, and equilibrium quantity should go down. C. Equilibrium price and quantity should both go up. D. Equilibrium price should go down, and equilibrium quantity should go up.