The minimum wage is often offered as a possible way to address the income gap. There is, however, a possibility that a minimum wage strategy could backfire. Which statement below best summarizes the positive and negative aspects of raising the minimum wage? a. Increases some workers’ incomes but leads to other workers likely being replaced with technology b. Encourages more workers to take jobs but causes resentment among low-wage workers currently employed c. Increases the demand for labor but causes some workers to work less as their incomes grow d. Does not affect labor markets unless it were below the equilibrium wage but would not increase employment unless it were above the equilibrium wage e. Lowers the direct cost of labor to employers, while increasing the cost to taxpayers
The minimum wage is often offered as a possible way to address the income gap. There is, however, a
possibility that a minimum wage strategy could backfire. Which statement below best summarizes the
positive and negative aspects of raising the minimum wage?
a. Increases some workers’ incomes but leads to other workers likely being replaced with
technology
b. Encourages more workers to take jobs but causes resentment among low-wage workers
currently employed
c. Increases the demand for labor but causes some workers to work less as their incomes grow
d. Does not affect labor markets unless it were below the equilibrium wage but would not
increase employment unless it were above the equilibrium wage
e. Lowers the direct cost of labor to employers, while increasing the cost to taxpayers
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