Question

why do minimum wage increases sometimes lead to higher unemployment rates among unskilled workers? (1 point)
more workers choose to leave the labor force
the cost of goods and services decreases for consumers
government regulations on hiring become more strict
businesses may hire fewer workers to control costs

Explanation:

When minimum wage increases, labor costs for businesses rise. To keep costs in check, businesses might reduce the number of unskilled workers they employ, leading to higher unemployment among this group. Option A is incorrect as minimum wage increase is more likely to attract workers to the labor force rather than make them leave. Option B is wrong because an increase in minimum wage usually leads to higher costs for businesses, which may pass on some of these costs to consumers (increasing prices, not decreasing). Option C has no direct relation to minimum wage increase causing higher unemployment among unskilled workers.

Answer:

D. Businesses may hire fewer workers to control costs