Advocates for $15-An-Hour Federal Minimum Wage Press Biden for a Meeting

The current federal minimum wage is $7.25 an hour. President Biden has urged Congress to increase the minimum to $15. Research shows that an increase in the minimum wage benefits women and workers of color, particularly in the South.—floridaphoenix.com

Answer the following questions to check your understanding of the story.

What will happen in the market for low-skilled labor if the federal minimum wage rises from $7.25 an hour to $15 an hour?

a) Unemployment will increase if the $15-an-hour wage rate is less than the equilibrium wage rate.

b) Neither employment nor unemployment will change.

c) Unemployment will increase if the $15-an-hour wage rate exceeds the equilibrium wage rate.

d) The supply of labor will increase but most of these workers will find jobs.

Does a rise in the minimum wage necessarily benefit women and workers of color?

a) No it doesn’t because they will need to be more productive to keep their jobs.

b) Yes it does because it gives the labor market a fair outcome.

c) No it doesn’t because, with voluntary exchange blocked, discrimination may play a part in job allocation.

d) Yes it does because they will earn higher incomes.

Advocates for $15-An-Hour Federal Minimum Wage Press Biden for a Meeting

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