Minimum Wage

• What is the minimum wage defined as?

  Lowest hourly wage set by law
• The minimum wage is updated periodically to reflect changes in the cost of living.

  True
• Match the advantages and disadvantages of the minimum wage:

  Increases worker incomes ↔️ May lead to job losses

  Stimulates consumer demand ↔️ Can increase prices

  Improves living standards ↔️ Reduces business competitiveness
• How does the minimum wage differ from market wage?

  It is legally mandated
• The minimum wage boosts the earnings of low-paid workers
• What is one potential disadvantage of the minimum wage?

  Potential job losses
• Place the following economic effects of a minimum wage in the correct order:

  1️⃣ Increased incomes

  2️⃣ Stimulated demand

  3️⃣ Economic growth
• What is one argument against the minimum wage regarding competitiveness?

  Reduces business competitiveness
• The minimum wage is set by the government
• The minimum wage can improve living standards by ensuring workers earn a fair basic income.


  True
• What is a potential negative effect of the minimum wage on employment?

  Potential job losses
• The minimum wage can stimulate economic growth by boosting consumer demand
• Higher minimum wages can make businesses less competitive in regions with lower labor costs.


  True
• Higher worker satisfaction due to the minimum wage can lead to increased productivity
• The minimum wage is the only policy needed to eliminate income inequality.

  False
• The minimum wage increases the incomes of low-wage workers
• The minimum wage is an intervention aimed at increasing the income of low-paid workers
• Who sets the minimum wage?

  Government
• If the market wage for a job is $13 per hour and the minimum wage is $15, the employer must pay $15.


  True
• A minimum wage can improve living standards by ensuring workers afford necessities.


  True
• Higher labor costs from a minimum wage increase may lead to potential job losses
• What is the legally set lowest hourly wage an employer can pay their employees called?

  Minimum wage
• What are the primary purposes of setting a minimum wage?

  1️⃣ Protect low-paid workers

  2️⃣ Reduce poverty

  3️⃣ Promote fairer income distribution
• The minimum wage can stimulate consumer demand by increasing workers' purchasing power
• Increased prices may negate the benefits of a higher minimum wage for workers.


  True
• Why might businesses reduce staff in response to a higher minimum wage?

  To cover labor costs
• What are potential responses of businesses to an increase in the minimum wage?

  1️⃣ Hire fewer employees

  2️⃣ Increase prices

  3️⃣ Invest in automation
• How does the minimum wage help reduce poverty?

  Increases living standards
• Is the minimum wage considered an effective tool in reducing income inequality?

  Yes
• The minimum wage can help lift families out of poverty.

  True
• Businesses may reduce staff to offset higher labor costs
• What is the legal definition of the minimum wage?

  Lowest hourly wage
• Who updates the minimum wage periodically?

  Government
• By raising incomes, the minimum wage can help reduce poverty
• What is one advantage of the minimum wage for low-paid workers?

  Better standard of living
• How does a minimum wage stimulate economic growth?

  Increased consumer demand
• Businesses may reduce staff to cover higher labor costs.
• Higher worker satisfaction can lead to increased productivity.
• The minimum wage encourages job-seeking and supports job creation


  True
• A higher minimum wage boosts consumer spending, which supports job creation


  True