What do minimum wage laws dictate?
Question: A minimum wage law dictates: the highest wage that firms must pay for labor.
What do minimum wage laws do quizlet?
The Minimum Wage is the lowest wage that employers can legally pay workers. Thus, it is a price floor. The FLSA also includes provisions mandating time and one-half overtime pay and restrictions on the use of child labor. The Real Value of the minimum wage is expressed in constant dollar or inflation-adjusted values.
What determines wages quizlet?
The rate of pay for a specific job, Determined by 4 factors: Human capital, working conditions, discrimination, and government actions. The lowest legal wage an employer can pay for an hour of work.
Why does a government impose a minimum wage quizlet?
**A minimum wage is a price floor and is therefore imposed above the market determined equilibrium price for low skill labor. At that point the quantity supplied of labor will exceed the quantity demanded.
Why was the minimum wage established?
The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.
What is the minimum wage Massachusetts?
$14.25 per hour
The Massachusetts minimum wage will increase from $13.50 to $14.25 per hour beginning on Jan. 1. Tipped employees are also getting a raise, and must be paid a minimum of $6.15 per hour provided that their tips bring them up to at least $13.50 per hour.
Why is the minimum wage controversial quizlet?
Why is the minimum wage controversial? Opponents argue that when the minimum wage is increased, some businesses cut jobs to keep their labor costs the same which, then, contributes to unemployment. How does Social Security affect Americans today? It continues to give basic financial support to the elderly.
What is a minimum wage worker?
A minimum wage is the lowest wage per hour that a worker may be paid, as mandated by federal law. It is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job.
What factors affect wages quizlet?
Factors that affect wage include race, gender, safety laws, employers responding to wage levels, and unions.
What four factors cause wage rates to differ give examples?
Education level, job description and responsibilities, experience, and industry of employment all contribute to differences in pay among managers. Greater variations in these factors contribute to a relatively large wage difference among management occupations.
When the government imposes a minimum wage law?
When the government imposes a minimum wage, the real wage is determined by the minimum wage divided by the price level, not by the interaction between labor supply and demand. If there is inflation and a fixed nominal minimum wage, then the level of employment will increase and the real minimum wage will decrease.
What are the effects of a minimum wage set below the equilibrium wage quizlet?
if it is set below the equilibrium rent. When a minimum wage is inefficient, the firms’ surplus and workers’ surplus shrink, a deadweight loss arises, and resources are lost in job search.