If the government wants to increase the minimum wage for workers, what type of policy should they implement?

Question

Quizplus · Accepted Answer

To increase the minimum wage for workers, the government should implement a price floor. A price floor is a government-imposed minimum price that must be paid for a good or service. In this case, the minimum wage is the price floor for labor. Setting a higher minimum wage would ensure that workers are paid a certain amount, which may help reduce poverty and increase overall wages. However, it can also lead to some negative effects, such as lower employment and increased prices for consumers.

If the Government Wants to Increase the Minimum Wage for Workers