Question

Those who oppose minimum wage legislation argue that:

the minimum wage should be directed by executive order.
the minimum wage should be set above the market-clearing equilibrium.
the minimum wage should automatically increase with inflation.
setting a wage above the market-clearing equilibrium creates unemployment.

Answer 1

Opponents of minimum wage legislation argue that setting a wage above the market-clearing equilibrium creates unemployment.

Step-by-step explanation:

Those who oppose minimum wage legislation argue that setting a wage above the market-clearing equilibrium creates unemployment. By setting a minimum wage higher than what the market would naturally dictate, businesses may not be able to afford to hire as many workers, resulting in job losses. This argument is based on the concept that if wages are set artificially high, employers may not be able to afford to hire workers at that wage, leading to unemployment.

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