Minimum Wage Impacts and Consequences

The video discusses the imposition of a national minimum wage, highlighting both its benefits and drawbacks. Benefits include reducing poverty, closing the income gap, and incentivizing work. However, it may also lead to unemployment, especially among youth, and increase business costs. Regional differences and potential impacts on government finances are also considered.

What is one of the primary goals of implementing a national minimum wage?

• To promote international trade

• To decrease inflation

• To increase government revenue

• To reduce income inequality

How does a national minimum wage potentially reduce poverty?

• By boosting earnings for low-paid workers

• By lowering taxes

• By increasing the cost of living

• By reducing government spending

What is a potential benefit for businesses when a minimum wage is implemented?

• Decreased employee turnover

• Increased training costs

• Higher unemployment rates

• Lower productivity

What is a potential negative impact of a national minimum wage?

• Decreased worker morale

• Lower business costs

• Higher unemployment rates

• Increased employment opportunities

Why might young workers be adversely affected by a minimum wage?

• They may lack skills to justify higher wages

• They are more experienced

• They are more likely to be employed

• They have higher productivity

How can regional differences impact the effectiveness of a national minimum wage?

• By creating uniform living standards

• By ignoring cost of living variations

• By increasing government control

• By reducing business competition

What is a potential fiscal impact on the government when implementing a minimum wage?

• Lower inflation rates

• Increased tax revenue

• Decreased public spending

• Higher costs if employing low-paid workers

How might businesses respond to increased costs due to a minimum wage?

• By hiring more workers

• By reducing prices

• By increasing wages further

• By relocating to areas with lower wage laws

What is a potential risk for the economy if businesses pass on higher costs to consumers?

• Decreased unemployment

• Increased competitiveness

• Lower trade deficit

• Higher inflation

What is a potential consequence for workers earning above the minimum wage when it is implemented?

• They will have reduced job security

• They will face increased competition

• They will receive less training

• They may demand higher wages