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Chapter 16: Problem 24

Which statement is true? (LO7) a) The federal minimum wage has ensured that virtually everyone employed full- time earns enough to support a family above the poverty line. b) The federal minimum hourly wage rate was raised to \(\$ 7.25\) in 2009 . c) The federal minimum wage rate is raised each year to keep up with the rate of inflation. d) The federal minimum wage was last raised in \(2003 .\)

Short Answer

Expert verified
The true statement is B: "The federal minimum hourly wage rate was raised to $7.25 in 2009."

Step by step solution

01

Evaluating Statement A

Let's analyze statement A: "The federal minimum wage has ensured that virtually everyone employed full-time earns enough to support a family above the poverty line." Although raising the minimum wage has helped some working full-time out of poverty, it's not accurate to say that it has ensured "virtually everyone" will be above the poverty line. It is common knowledge that many people working full-time at the federal minimum wage struggle to support their families above the poverty line. Therefore, statement A is not true.
02

Evaluating Statement B

Now let's look at statement B: "The federal minimum hourly wage rate was raised to \$7.25 in 2009." This statement is true. The federal minimum wage was raised from \$6.55 to \$7.25 on July 24, 2009, following the Fair Minimum Wage Act of 2007. So statement B is true.
03

Evaluating Statement C

Let's analyze statement C: "The federal minimum wage rate is raised each year to keep up with the rate of inflation." While it would be ideal for the minimum wage to be automatically adjusted for inflation, this is not the case in the United States. The federal minimum wage has remained at the same level since 2009, even though the cost of living has increased with inflation over the past years. Therefore, statement C is not true.
04

Evaluating Statement D

Finally, let's consider statement D: "The federal minimum wage was last raised in 2003." The correct year for the last increase in the federal minimum wage was 2009, as discussed in step 2. It was not 2003, so statement D is not true.
05

Identifying the True Statement

After evaluating each statement, we found statement B to be true: "The federal minimum hourly wage rate was raised to \$7.25 in 2009."

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Most popular questions from this chapter

If the minimum wage were eliminated, the employment of marginal workers would (LO7) a) rise a lot b) rise a little c) stay exactly the same d) fall a little e) fall a lot f) fall by an indeterminate amount g) rise by an indeterminate amount

Beth Schulman makes the point that workers in nursing homes, retail stores, hotels, and child care are (LO6) a) well paid considering that their work is not very important b) lucky they have jobs at all c) doing important work, but not being paid enough money d) not well paid, but generally well regarded by their employers

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According to the theory of the backward-bending labor supply curve, (LO2) a) first the substitution effect sets in, then the income effect b) first the income effect sets in, then the substitution effect c) the substitution effect and the income effect set in at the same time d) there is neither a substitution effect nor an income effect

Which statement is the most accurate? (LO8) a) Employment discrimination has been almost entirely wiped out over the last few decades. b) The glass ceiling no longer exists. c) Nearly everyone agrees that Walmart is an equal opportunity employer. d) Women have won huge settlements in sex discrimination suits against their employers.
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