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Which of the following is least likely to be the result of a minimum wage?
A) There will be an abundance of low-skilled workers willing to work.
B) On-the-job training will be cut back.
C) Labor will be substituted for capital.
Your answer:--> B
Correct answer --> C
Explanation
Firms substitute capital for the “expensive” labor and use more than the economically efficient amount of capital.
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Can someone pls explain this.... |
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