The Federal Minimum Wage Is

Multiple Choice

The federal minimum wage is:

A) not likely an efficiency wage because it does not attract high quality workers.
B) likely an efficiency wage because it prevents firms from hiring unskilled workers and lowers it total cost of production.
C) likely an efficiency wage because it lowers the costs of searching for new workers.
D) not likely an efficiency wage because firms would attempt to earn higher profits without any government intervention.