Which of the Following Best Explains Why a Minimum Wage

question 75

Multiple Choice

Which of the following best explains why a minimum wage may NOT be effective as a method of alleviating relative poverty?

• A) Minimum wages are too low to reduce poverty.
• B) The recipients of minimum wages are typically not facing poverty.
• C) Minimum wages reduce the productivity of labour.
• D) There is no national minimum wage in Canada.

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Definitions:

Beneficiary Payment

A payment made to someone entitled to receive benefits from a legal arrangement or insurance policy.

Whole-life Insurance

A type of permanent life insurance policy that covers the insured's entire lifetime and includes an investment component known as the policy's cash value.

Term-life Insurance

A type of life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term.

Premiums

Periodic payments made to an insurance company in exchange for coverage and protection against financial loss or damage.