Business School 101: Minimum Wage Impacts

What was the new minimum wage set by California in early 2024?

• $15 per hour

• $16 per hour

• $18 per hour

• $17 per hour

How does a higher minimum wage help low-income workers?

• By providing free healthcare

• By offering tax benefits

• By increasing their annual income

• By reducing their working hours

What challenge might small businesses face with increased minimum wages?

• Increased hiring

• Reduced labor costs

• More government subsidies

• Higher labor costs

What was one effect of Seattle's 2014 minimum wage increase?

• Lower consumer prices

• Higher investment in new technologies

• Increased hiring

• Reduced working hours for some employees

How do businesses often respond to higher labor costs?

• By hiring more staff

• By increasing prices

• By reducing prices

• By offering more discounts

What was the impact of New York's minimum wage hike on fast food prices?

• Prices increased by 10%

• Prices increased by 3-5%

• Prices remained the same

• Prices decreased by 3-5%

What is a potential positive economic impact of raising the minimum wage?

• Decreased consumer spending

• Increased consumer spending

• Lower demand for goods

• Reduced economic growth

How might businesses react to higher costs from increased wages?

• By reducing investment in job creation

• By increasing their workforce

• By investing more in job creation

• By reducing investment in new technologies

Why might the impact of minimum wage increases vary by region?

• Due to differences in local economies

• Because all regions have the same economic conditions

• Because of uniform living costs

• Due to federal regulations

What challenge do rural businesses face with wage hikes?

• Easier absorption of wage hikes

• Increased hiring

• Struggling to absorb wage hikes

• Lower operational costs