If the government decides to raise the minimum wage,ceteris paribus:_________.
A) All workers are better off.
B) All workers are worse off.
C) Some workers are better off and some are worse off.
D) Workers are not affected by a minimum wage increase,only by a decrease.

If the government raises minimum wages, the cost of hiring labour increases and as a result, some firms would lay off some workers especially those that are low skilled labours.

As a result some would lose their jobs while others would benefit from the increased wages

Answer Link

If the government decides to raise the minimum wage,ceteris paribus:_________. A) All workers are better off. B) All workers are worse off. C) Some workers are better off and some are worse off. D) Workers are not affected by a minimum wage increase,only by a decrease.

Respuesta :

Otras preguntas

If the government decides to raise the minimum wage,ceteris paribus:_________.
A) All workers are better off.
B) All workers are worse off.
C) Some workers are better off and some are worse off.
D) Workers are not affected by a minimum wage increase,only by a decrease.