Which of the Following Is True of the Minimum Wage

question 82

Multiple Choice

Which of the following is true of the minimum wage?

• A)It has significantly reduced poverty in the United States
• B)A worker earning the minimum wage will keep a family of three out of poverty
• C)It results in a much more equal distribution of income in the United States
• D)Unemployment rates are unaffected by the minimum wage
• E)None of the above is true

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Crowding In

The potential for government spending to stimulate private investment in an otherwise dead economy.

Private Investment

Expenditure on capital by private sector firms or individuals, not including governmental spending.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in GDP.