A stated goal of a minimum wage is to
A) increase government tax revenue.
B) stabilize production costs.
C) boost the incomes of low-wage earners.
D) decrease business profits.
E) increase business profits by making the labor market more efficient.

Question

Quizplus · Accepted Answer

The stated goal of a minimum wage is to boost the incomes of low-wage earners, thereby reducing poverty and increasing their purchasing power. It is not aimed at increasing government tax revenue or decreasing business profits, although it may increase production costs. The idea behind maintaining a minimum wage is that it can improve the standard of living of workers and reduce income inequality.

A Stated Goal of a Minimum Wage Is to