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Reading Comprehension: Inference Questions

The author implies that minimum wage

That's right!

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Since we know that minimum wage laws can cause employees to get paid more than the value of their work, we may infer that minimum wage is not always justified by the fruit of employees' work.

Incorrect.

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It is stated that the conditions for Classical Unemployment may be created by minimum wage laws. This implies that minimum wage legislation causes rather than prevents Classical Unemployment.

Minimum wage is discussed in the last sentence of the passage. In the sentence which precedes the last sentence, it is stated that employers are reluctant to hire employees because of the high wages. However, this does not imply that employers are reluctant to pay their current employees.

The stability of the economy is not mentioned anywhere in the passage. To claim that the restriction of minimum wage will stabilize the economy is to take too great a step from what is stated in the passage.

The last sentence of the passage states that sometimes wages exceed the benefits of employees' work. However, the ability of the employers to pay wages is not discussed. To infer that employers are unable to pay the high wages is to take too great a step from what is stated in the passage.

could sometimes be higher than the productivity of employees earning it
should be well-established in legislation in order to avoid Classical Unemployment
deters employers from paying wages to their employees
must be restricted in order to stabilize the economy
exceeds the wages that employers are able to pay