Reading Comprehension: Inference Questions
The author implies that minimum wage
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[[snippet]] Productivity may well fall if an employer does not hire people but they do not really have a choice. Workers are needed and they will produce but it is the bottom line which is affected because of higher expenses spent on employee wages. What is produced still needs to be produced. The fact that they are reluctant to hire workers this does not mean they will not.Incorrect.
[[snippet]]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.
