Empirical Evidence on the Practical Importance of Minimum Wage Laws

Multiple Choice

Empirical evidence on the practical importance of minimum wage laws suggests:

A) that their impact on the employment level is nil.
B) that their impact on employment is actually favourable because they put more money in the hands of poorly paid workers, stimulating consumer spending, thus promoting economic growth.
C) that they do reduce the employment levels of younger and unskilled workers to a minor extent - a weak disemployment effect.
D) that they succeed in raising the incomes of poor households.
E) that they do reduce the employment levels of younger and unskilled workers to a major extent - a strong disemployment effect.