Minimum Wage

• What is the primary purpose of minimum wage legislation?

  Fair wages and protection
• Minimum wage ensures all workers receive the same hourly pay rate, regardless of their skills or experience.

  False
• Minimum wage legislation aims to ensure workers receive a fair wage that covers basic living costs and protects them from exploitation.exploitation
• What is the key difference between a living wage and a minimum wage?

  Living wage covers living costs
• Match the impact of minimum wage on employers with its description:

  Increased Labor Costs ↔️ Employers pay higher wages

  Improved Employee Retention ↔️ Lower recruitment costs

  Increased Productivity ↔️ Motivated workers produce more

  Competitive Pressure ↔️ Employers must match wage increases
• The impact of minimum wage on employees includes improved living standards but may reduce job opportunities if employers cut back on hiring.opportunities
• Why might a high minimum wage limit entry-level job opportunities?

  Less affordable hiring
• One objective of minimum wage legislation is to ensure workers receive a legally set hourly pay rate
• How does minimum wage legislation improve living standards for workers?

  Provides enough income
• Increased labor costs due to minimum wage may reduce profit margins for employers.


  True
• Order the strategies employers use to adapt to minimum wage increases:

  1️⃣ Adjust pricing

  2️⃣ Invest in automation

  3️⃣ Improve workforce productivity
• What does minimum wage incentivizes employers to invest in for their workers?

  Training and upskilling
• Match the effect with its advantage or disadvantage:

  Wage Increases ↔️ Reduces poverty

  Job Displacement ↔️ Higher unemployment

  Consumer Spending ↔️ Boosts demand

  Inflation ↔️ Higher prices
• Higher wage expenses due to minimum wage may necessitate price increases for employers.


  True
• What is one argument against minimum wage from employers' perspective?

  Raises business costs
• Minimum wage legislation aims to ensure workers receive a fair wage that covers basic living costs and prevents exploitation.exploitation
• What does minimum wage legislation aim to protect workers from?

  Wage exploitation
• The minimum wage in the UK is fixed and does not change to reflect economic conditions.

  False
• Fair wages are a primary objective of minimum wage legislation.


  True
• How does improved employee retention benefit employers after a minimum wage increase?

  Reduced turnover costs
• A high minimum wage can price low-skilled workers out of the labor market.


  True
• What is the primary purpose of minimum wage legislation?

  Ensure a fair wage
• Minimum wage legislation prevents employers from paying wages below the set minimum.


  True
• Match the objective with its description:

  Fair Wages ↔️ Legally set hourly pay

  Protecting Workers ↔️ Prevents below minimum wages

  Improved Living Standards ↔️ Meets basic needs
• Higher wages improve employee morale and reduce turnover
• Minimum wage legislation may lead to job losses for low-skilled workers if set too high.


  True
• Minimum wage may reduce job opportunities if employers cut back on hiring
• What are the key economic effects of minimum wage legislation?

  Wage increases, job displacement, consumer spending, inflation
• Supporters of minimum wage argue it reduces income inequality
• Critics of minimum wage argue it may fuel inflation.


  True