Economist Dr. Park argues that minimum wage increases in mid-sized cities tend to be absorbed by reduced executive compensation and investor returns rather than by reductions in employment, contradicting the standard prediction that wage floors cause job losses.
Which finding, if true, would most strongly support Dr. Park's argument?
- A
Workers earning minimum wage report higher satisfaction after wage increases.
- B
Mid-sized cities tend to have more variable employment than large cities.
- C
Some employers responded to the wage increase by raising consumer prices.
- Dcheck_circle
After a recent minimum wage increase in several mid-sized cities, employment levels remained stable while average executive bonuses fell by 12 percent.
Explanation
A directly demonstrates both halves of Park's claim: stable employment and reduced executive compensation. D suggests prices rose, which is a different mechanism than Park describes. B and C are tangential.