Is the minimum wage fair?
A) Yes, because all workers benefit because they are paid more.
B) No, because it enhances the prospects of voluntary exchange.
C) No, because workers who lose their jobs are made worse off.
D) Yes, because firms must pay a wage closer to a living wage.
E) Yes, because workers need the extra income.

Question

Quizplus · Accepted Answer

While the minimum wage does provide higher pay for some workers, it can also result in job loss for others as firms may cut back on hiring or even lay off workers in order to mitigate increased labor costs. This can ultimately make the affected workers even worse off, showing that the minimum wage may not be a fair or effective solution to addressing income inequality.

Is the Minimum Wage Fair