Question

A Wall Street Journal article noted that a study by the U.S. Congressional Budget Office​ "estimated raising the minimum wage to​ $10.10 an hour would reduce U.S. employment by​ 500,000 but lift​ 900,000 Americans out of​ poverty." ​Source: Julie Jargon and Eric​ Morath, "As Wage Debate​ Rages, Some Have Made the​ Shift," Wall Street Journal​, April​ 8, 2014. The minimum wage might reduce employment because A. it would require training and benefits which would be too expensive to hire new workers. B. some workers may choose not to work at the higher wage. C. employer costs would increase. D. the increase raises the wage for all workers.

Answer 1

Answer:

D

Explanation:

Right on edge.

Answer 2

Answer:

The correct answer is option C.

Explanation:

The introduction of minimum wages may lead to a reduction in the overall employment rate. This is because, the minimum wages will increase cost of labor for those employers who were earlier paying less than the current minimum wage. As their cost increase, the employers will be able to hire less workers.

This will cause the rate of employment to decrease.