Understanding Minimum Wage

What is the primary purpose of implementing a minimum wage?

• To increase the number of available jobs

• To prevent businesses from going bankrupt

• To protect workers from being paid too little

• To ensure all workers earn the same salary

Which group of workers is NOT mentioned as having a different minimum wage rate?

• Full-time students

• Tipped workers

• Workers under 20

• Part-time employees

What was the initial minimum wage set by the Fair Labor Standards Act of 1938?

• 1 dollar per hour

• 10 cents per hour

• 25 cents per hour

• 50 cents per hour

How has the purchasing power of the minimum wage changed since the late 1960s?

• It has doubled

• It has decreased by 25%

• It has increased by 25%

• It has remained the same

What is a potential negative effect of raising the minimum wage according to the CBO study?

• Lower inflation rates

• Decreased worker productivity

• Higher unemployment rates

• Increased poverty levels

How many jobs could potentially be lost over 10 years if the minimum wage is increased to $15?

• 500,000

• 2 million

• 1.4 million

• 900,000

What is one argument against raising the minimum wage?

• It ensures all workers earn a living wage

• It might cause inflation and unbalanced purchasing power

• It could lead to increased wealth inequality

• It reduces the productivity of the economy

What do proponents of raising the minimum wage argue about businesses that cannot pay a living wage?

• They should not be allowed to operate

• They should receive government subsidies

• They should increase their prices

• They should be allowed to pay less

What is a common argument for raising the minimum wage?

• It will lead to higher inflation

• It will decrease the productivity of the economy

• It will help reduce wealth inequality

• It will increase the number of minimum wage jobs

What is the role of minimum wage jobs according to some opponents of raising the minimum wage?

• They are designed to be entry points to higher-paying roles

• They are meant to be lifelong careers

• They should pay the same as skilled jobs

• They should be eliminated