Which of the following is a drawback of a minimum wage in terms of social policy?
A) It assumes people will take differences in pay into account when they choose a career.
B) It is one and a half times the employee's usual hourly rate.
C) It applies only to the hours worked beyond 40 in one week.
D) It places the employer at an economic disadvantage relative to employers that pay the living wage.
E) It tends to be lower than the earnings required for a full-time worker to rise above the poverty level.

Question

Quizplus · Accepted Answer

A drawback of a minimum wage in terms of social policy is that it tends to be lower than the earnings required for a full-time worker to rise above the poverty level. This means that while the minimum wage may provide some level of basic income, it may not be enough to help individuals or families to achieve economic security and stability.

Which of the Following Is a Drawback of a Minimum