what-is-the-difference-in-unemployment-effects-between-minimum-wage-laws-and-eff

Question

What is the difference in unemployment effects between minimum wage laws and efficiency wages?

Accepted Answer

Minimum wage laws increase unemployment, while efficiency wages may reduce it.

Answer

Minimum wage laws have no effect, while efficiency wages increase unemployment.

Answer

Both increase unemployment by reducing labor demand.

Answer

Both decrease unemployment by increasing labor demand.