A Stated Goal of a Minimum Wage Is to

question 219

Multiple Choice

A stated goal of a minimum wage is to

• A) increase government tax revenue.
• B) stabilize production costs.
• C) boost the incomes of low-wage earners.
• D) decrease business profits.
• E) increase business profits by making the labor market more efficient.

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Definitions:

Keynesians

Economists and theorists who believe in the economic principles of John Maynard Keynes, emphasizing the need for government intervention to manage economic cycles.

Classical Economists

Economists from the 18th and 19th centuries who focused on free markets, supply and demand, and self-regulating economy theories.

Laissez-Faire Economics

A belief system advocating for capitalism with minimal to no government interference in the market.

Potential Level

The highest level of economic output that an economy can sustain over a long period without increasing inflation.