Question

Some critics of the minimum wage say it hurts poor people. What do these critics say will happen when the minimum wage goes up?

a. The demand for professional labor will go down.
b. The demand for professional labor will go up.
c. The demand for unskilled labor will go down.
d. The demand for unskilled labor will go up.

Answer 1

The correct answer is "C" if the wages go up then less people will be hired for work, and taxes would rise due to the wages rising.

Answer 2

The answer is: c. The demand for unskilled labor will go down.

When the minimums wage go up, many small business would not be able to afford unskilled labor that they need to maintain their operation. These critics believe that this will directly resulted to an increase in unemployment rate in the country and lead to economic stagnation in the long run.