Economist Dr. Rachel Park argues that increasing minimum wage does not significantly reduce employment, contrary to classical economic theory.
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readingWhich economic study would best support Park's position?
A
Minimum wages vary by state
B
Comparing adjacent counties across state lines with different minimum wages, employment levels remained nearly identical despite 20% wage differences
C
Workers prefer higher wages
D
Businesses have various cost structures
Correct Answer: B
Choice B is the best answer. Natural experiment with similar counties isolates wage effect on employment.
💡 Strategy: Policy effect claims need controlled comparisons of similar areas.