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According to the text, minimum-wage laws cause increases in:_________.

a) employment possibilities.
b) structural unemployment.
c) Povery
d) Productivity

User Ulgen
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Answer: b) structural unemployment.

Step-by-step explanation:

Structural Unemployment results from when the skills required by employers are not the skills that employees have. Also it occurs when there at a certain wage rate, there are more people wanting a job than the employer can afford to or wants to hire.

Imposing a minimum-wage law will increase the labor expense of employers so they will demand less workers. At the same time it will increase the number of people looking for work as they will see the minimum wage as an incentive. This would by definition therefore, lead to higher structural unemployment because there will be more workers than employers demand.

User SalutonMondo
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