asked 140k views
3 votes
When the government sets a price floor on earnings, it is called which of the following?

employment guarantee

base-level wage

minimum wage

market equilibrium rate

2 Answers

6 votes

Answer:

minimum wage

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answered
User Thomas Weller
by
7.8k points
4 votes
The answer is minimum wage.

A price floor is:
a) The lowest price a consumer can pay for a good
OR
b) The lowest price a person can be paid for a certain service.

In this case, the United States government has a price floor, which is called minimum wage. The federal minimum wage ensures that Americans in certain industries can not be paid less than a certain hourly rate. Currently, it is $7.25 an hour. However, states can create their own minimum wage for their citizens as well.
answered
User IvanL
by
8.1k points

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