Suppose You Were to Hear an Economist Defend the Minimum

Multiple Choice

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated the productivity of workers both before and after an increase in the minimum wage and found that the increase in the minimum wage increases productivity by more (on a percentage basis) than it increased costs. You would know her to be relying on the ____ argument.

A) macroeconomic
B) elasticity
C) work effort
D) consumer and producer surplus