The Minimum Wage Is a Relatively Blunt Instrument with Which

question 41

Multiple Choice

The minimum wage is a relatively blunt instrument with which to reduce poverty because

• A) only about half the labor force is covered by the minimum wage.
• B) only about half the employers comply with the law.
• C) most workers whose wages are affected by minimum wage increases do not live in poor families.
• D) minimum wage increases cause large increases in unemployment.

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Definitions:

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, given by an employer to an employee.

Union Contracts

Agreements between labor unions and employers detailing wages, working conditions, and rights for union members.

Nonunion Workers

Employees who are not members of a labor union and do not have their employment terms negotiated collectively.

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.