Question

which of the following is the most likely result of an increase in the minimum wage?
a. a decrease in the number of workers seeking minimum wage jobs.
b. an increase in the employment of unskilled workers.
c. a decrease in the employment of unskilled workers.
d. an increase in the demand for unskilled workers.

Explanation:

Minimum wage is a price floor for labor. When it rises above the equilibrium wage, firms face higher labor costs. Unskilled workers are the primary group in minimum wage roles; firms will demand fewer of them as their labor becomes more expensive, leading to reduced employment for this group. More workers will seek these higher-paying jobs (so a is wrong), employment of unskilled workers falls (so b is wrong), and demand for unskilled workers decreases (so d is wrong).

Answer:

c. A decrease in the employment of unskilled workers.