Minimum wage laws contribute to structural unemployment by:?

Question

Minimum wage laws contribute to structural unemployment by:

A. keeping wages above the market-clearing level.

B. keeping wages below the market-clearing level.

C. allowing unemployed workers to search longer or less intensively for jobs.

D. forcing unemployed workers to take the first job offered to them.

E. prohibiting employers from firing workers except for specific reasons.

Answer 1

A. keeping wages above the market-clearing level

Answer 2

F. Forcing employers to pay a minimum price for work that may not meet the standards of that company, thereby forcing the price of finished goods to rise. This price rise in turn reduces the buying power of the minimum wage worker who then begins to lose interest in his job lowering the quality of his work and the finished product which forces the employer to outsource his manufacturing to OutsideU.S. companies which costs the minimum wage worker his job.