Assume there is an increase in the minimum wage and it is binding. Please select all the true statements. (Check all that apply) It will induce a shortage of high-skilled workers. It will induce a shortage of low-skilled workers. It will increase unemployment of high-skilled workers. It will increase unemployment of low-skilled workers.
Assume there is an increase in the minimum wage and it is binding. Please select all the true statements. (Check all that apply) It will induce a shortage of high-skilled workers. It will induce a shortage of low-skilled workers. It will increase unemployment of high-skilled workers. It will increase unemployment of low-skilled workers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume there is an increase in the minimum wage and it is binding. Please select all the true statements. (Check all that apply)
It will induce a shortage of high-skilled workers.
It will induce a shortage of low-skilled workers.
It will increase unemployment of high-skilled workers.
It will increase unemployment of low-skilled workers.
Expert Solution
Step 1: Define minimum wage
Minimum wage is the legally ordered least hourly wage rate that employers are expected to pay to their employees. It is laid out by government specialists and is expected to guarantee that workers get a minimum degree of compensation for their labor.
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