QuestionJuly 20, 2025

If the government decides to increase the minimum wage rate paid to unskilled workers, which of the following would most likely occur? Unemployment among unskilled workers would decrease. Unemployment among unskilled workers would increase. There would be a shortage of unskilled labor. Workers and their employers would ignore the minimum wage.

If the government decides to increase the minimum wage rate paid to unskilled workers, which of the following would most likely occur? Unemployment among unskilled workers would decrease. Unemployment among unskilled workers would increase. There would be a shortage of unskilled labor. Workers and their employers would ignore the minimum wage.
If the government decides to increase the minimum wage rate paid to unskilled workers, which
of the following would most likely occur?
Unemployment among unskilled workers would decrease.
Unemployment among unskilled workers would increase.
There would be a shortage of unskilled labor.
Workers and their employers would ignore the minimum wage.

Solution
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Answer

Unemployment among unskilled workers would increase. Explanation 1. Analyze the impact of increased minimum wage Increasing the minimum wage typically raises the cost of hiring unskilled workers. 2. Assess employer response Employers may reduce hiring or lay off workers due to higher labor costs. 3. Determine effect on unemployment Reduced hiring and layoffs lead to increased unemployment among unskilled workers.

Explanation

1. Analyze the impact of increased minimum wage<br /> Increasing the minimum wage typically raises the cost of hiring unskilled workers.<br /><br />2. Assess employer response<br /> Employers may reduce hiring or lay off workers due to higher labor costs.<br /><br />3. Determine effect on unemployment<br /> Reduced hiring and layoffs lead to increased unemployment among unskilled workers.
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