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.

Question

Quizplus · Accepted Answer

While the minimum wage may increase the wages of some workers, studies have shown that the majority of workers who benefit from minimum wage increases do not live in poor families. Additionally, only about half of the labor force is covered by the minimum wage and many employers do not comply with the law. While some argue that minimum wage increases can lead to job losses, the evidence on this is mixed and not definitively proven. Therefore, the minimum wage may not be the most effective tool for reducing poverty.

The Minimum Wage Is a Relatively Blunt Instrument with Which