When the U

Multiple Choice

When the U.S.minimum wage was first passed in 1938,only 56% of workers were employed in covered firms.The incomplete coverage suggests that

A) the partial equilibrium ignores the movement of workers from uncovered sectors to covered sectors.
B) the decrease in employment is higher in general-equilibrium analysis.
C) the general-equilibrium analysis predicts the wage in uncovered sectors will fall.
D) all the workers will be worse off in both general- and partial-equilibrium analysis.