Which of the following statements about the minimum wage is true?
a. The minimum wage has not had any impact on income inequality.
b. Adjusting for inflation, the real minimum wage has fallen in the last 40 years.
c. Due to minimum wage increases, income inequality is now lower than it was in the mid-20th century.
d. The minimum wage tends to create inflation, which benefits the wealthy more than the poor.
The minimum wage is the least legal wage that a firm, organization, or government should pay to its workers after a given period. The minimum wage cannot be decreased by collective agreement or individual contracts. The purpose of the minimum wage shielding workers from unduly low payments. They are a tool to fight and minimize poverty.
Answer and Explanation: 1
The correct answer is C.
Due to minimum wage increases, income inequality is now lower than it was in the mid-20th century.
In the previous 30...
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fromChapter 7 / Lesson 12
Understand the minimum wage definition in economics. Discover the history of minimum wage in the U.S., and explore the advantages and disadvantages of imposing a minimum wage. Learn the difference between federal and state minimum wage.