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Question
Which of the following is true, holding all other things constant, when comparing regions that impose a higher minimum wage to regions that impose a lower minimum wage?
a. In regions with the highest minimum wage, most of the jobs require low skills, and workers are not productive enough to get paid the higher wage.
b. In regions with the lowest minimum wage, most of the jobs require technical skills and no one works minimum-wage jobs.
c. In regions with the lowest minimum wage, the price control is nonbinding; in the regions with the highest minimum wage, the price control is binding.
d. In regions with the lowest minimum wage, the price control is binding; in the regions with the highest minimum wage, the price control is nonbinding.
e. In regions with the highest minimum wage, the minimum wage law is legally enforced; in regions with the lowest minimum wage, the law is not strongly enforced.
Answer
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