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Chapter 28: Problem 10

The living wage set by municipalities tends to be (LO7) a) higher than the federal minimum wage b) lower than the federal minimum wage c) about the same as the federal minimum wage

Short Answer

Expert verified
The living wage set by municipalities is typically higher than the federal minimum wage, as it takes into account local living expenses to ensure workers can cover their basic needs.

Step by step solution

01

(Living Wage)

Many municipalities set a living wage to ensure that workers can cover their basic needs with the income they earn. It often takes into account the cost of living in the area, such as housing, food, and transportation. The living wage is usually set higher for more expensive regions.
02

(Federal Minimum Wage)

The federal minimum wage is the lowest legal wage that employers must pay to their employees. This wage is established and regulated by the federal government and remains the same across the country. It does not account for varying living expenses in different cities or regions. Comparing the two wages:
03

(Comparing Living Wage and Federal Minimum Wage)

Since the living wage considers the local cost of living, it is often set higher than the federal minimum wage. In order to allow workers to cover their basic needs, especially in more expensive urban areas, the living wage must be higher than the nationally standardized minimum wage. Answering the question:
04

(Selection of the correct answer)

Based on the information provided about the living wage and the federal minimum wage, the correct answer is: a) higher than the federal minimum wage

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Most popular questions from this chapter

Which statement is the most accurate? (L.O7) a) The federal minimum wage rate is indexed to the rate of inflation: Each year it's raised equal to the rate of inflation during the previous year. b) Over 10 million Americans are covered by a living wage law. c) There is considerable disagreement as to whether the federal minimum wage helps the unskilled workers more than it hurts them. d) Very few people's wage rates are actually determined by supply and demand.

The possibility of carning economic rent is great if (LO5) a) the supply of a factor is very high relative to demand b) the demand for a factor is very high relative to supply c) both demand for a factor and supply of a factor are high d) both demand for a factor and supply of a factor are low

Beth Schulman makes the point that workers in nursing homes, retail stores, hotels, and child care are (1.06) a) well paid considering that their work is not very important. b) lucky they have jobs at all. c) doing important work, but not heing paid enough money. d) not well paid, but generally well regarded by their employers.

Which statement about production workers is true? (1.06) a) They carn more in the U.S. than anywhere else in the world. b) They earn more in the U.S. than almost anywhere else in the world. c) They earn about the same in the U.S. as in most other countrics. d) They carn less in the U.S. than in most other countrics,

Which statement is true? \((\mathrm{LO} 3,6)\) a) Differences in wage rates are explained entirely by differences in productivity. b) Differences in wage rates are explained entirely by differences in education and training. c) Differences in wage rates are explained entirely by whom you know (rather than what you know). d) None of these statements is true.
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