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The Ordinance of Labourers, enacted by King Edward III of England in 1349, stipulated maximum wage rates for laborers.
Answer: True
Explanation: The Ordinance of Labourers, enacted by King Edward III of England in 1349, stipulated maximum wage rates for laborers as a response to labor shortages and wage increases following the Black Plague.
Modern statutory minimum wage laws were first established nationally in the United States in 1938.
Answer: True
Explanation: Modern statutory minimum wage laws were first established nationally in the United States with the passage of the Fair Labor Standards Act (FLSA) in 1938.
The purchasing power of the United States federal minimum wage attained its zenith in 1968.
Answer: True
Explanation: The purchasing power of the U.S. federal minimum wage reached its highest point in 1968.
The initial impetus for the minimum wage movement was primarily to address exploitation in sweatshop conditions, not high-tech industries.
Answer: True
Explanation: The primary historical motivation for the minimum wage movement was to combat the exploitation of workers in sweatshops, ensuring fairer compensation, rather than regulating wages in nascent high-tech sectors.
The Fair Labor Standards Act (FLSA), which established statutory minimum wages nationally in the United States, was enacted in 1938.
Answer: True
Explanation: The Fair Labor Standards Act (FLSA), which introduced statutory minimum wages nationally in the U.S., was passed in 1938.
In the late 19th-century United States, certain economists associated minimum wage advocacy with the eugenics movement.
Answer: True
Explanation: During the late 19th century in the United States, some economists, influenced by eugenics, advocated for minimum wages with the intent of favoring certain laborers while potentially excluding others deemed 'undesirable'.
President Franklin D. Roosevelt asserted that businesses dependent on paying sub-living wages should not be permitted to continue operating.
Answer: True
Explanation: President Franklin D. Roosevelt stated in 1933 that businesses relying on paying less than a living wage had no right to continue operating in the country.
Historically, the minimum wage movement evolved its focus from combating sweatshop exploitation to promoting worker self-sufficiency and improved living standards.
Answer: True
Explanation: The minimum wage movement's rationale shifted over time from addressing sweatshop conditions to supporting worker self-sufficiency and enhancing overall living standards.
What was the primary historical motivation behind the establishment of minimum wage movements?
Answer: To prevent the exploitation of workers in sweatshops and ensure fairer compensation.
Explanation: The primary historical motivation for establishing minimum wage movements was to prevent the exploitation of workers in sweatshops and ensure they received fairer compensation.
What historical decree from 1349 is mentioned as a precedent for wage regulation in England?
Answer: The Ordinance of Labourers
Explanation: The Ordinance of Labourers, enacted in 1349 by King Edward III, is mentioned as a historical precedent for wage regulation in England.
How did the rationale underpinning minimum wage laws evolve over time?
Answer: From preventing sweatshop labor to supporting worker self-sufficiency and improving living standards.
Explanation: The rationale for minimum wage laws evolved from an initial focus on preventing sweatshop labor to later emphasizing worker self-sufficiency and the improvement of living standards.
When was the national minimum wage first introduced in the United States?
Answer: 1938
Explanation: The national minimum wage was first introduced in the United States in 1938 with the enactment of the Fair Labor Standards Act.
According to the source, what was the peak purchasing power of the US federal minimum wage in 1968 equivalent to in contemporary terms?
Answer: It was significantly higher than the current federal minimum wage.
Explanation: The purchasing power of the U.S. federal minimum wage in 1968 was significantly higher than its contemporary value.
What did Winston Churchill describe as trades where workers received less than a living wage despite their utmost exertion?
Answer: Sweated trades
Explanation: Winston Churchill described 'sweated trades' as those where workers received wages below a living standard despite significant effort.
How did minimum wage regulations evolve from their medieval origins?
Answer: From setting maximums to setting minimums.
Explanation: Minimum wage regulations evolved from medieval practices of setting maximum wage limits to modern systems that establish minimum wage floors.
Within the framework of the monopsony model, a minimum wage, when set appropriately, may lead to an increase in employment in labor markets characterized by significant employer wage-setting power.
Answer: True
Explanation: The monopsony model suggests that in markets where employers possess considerable wage-setting power, a judiciously set minimum wage can potentially increase both wages and employment.
George Stigler, in 1949, argued that minimum wage laws could be ineffective, positing that employment might fall proportionally more than the wage increase.
Answer: True
Explanation: George Stigler argued in 1949 that minimum wage laws might be ineffective, suggesting that employment could decrease disproportionately relative to the wage hike, thereby potentially reducing overall earnings.
Advocates for minimum wage legislation contend that such policies can contribute to the reduction of poverty and economic inequality.
Answer: True
Explanation: Proponents argue that minimum wage laws can serve as a tool to alleviate poverty and diminish economic inequality.
The Kaitz index is an economic indicator used to measure the ratio of the minimum wage to the median wage, adjusted for coverage.
Answer: True
Explanation: The Kaitz index measures the ratio of the nominal legal minimum wage to the median wage, taking into account the industry-level coverage of the minimum wage.
Critics of minimum wage legislation posit that such policies may contribute to wage-price spirals.
Answer: True
Explanation: Opponents of minimum wage laws argue that they can potentially induce wage-price spirals, where rising wages lead to increased prices, which in turn necessitate further wage increases.
The standard supply and demand model predicts that minimum wages, when set above equilibrium, will decrease the quantity of labor demanded by employers.
Answer: True
Explanation: The standard supply and demand model posits that minimum wages set above the equilibrium wage rate will reduce the quantity of labor employers demand, potentially leading to unemployment.
Wage subsidies are proposed as an alternative to minimum wage laws, with proponents arguing they can address poverty without causing unemployment.
Answer: True
Explanation: Wage subsidies are suggested as an alternative to minimum wage laws, with the argument that they can alleviate poverty without inducing unemployment.
The projected minimum to median wage ratio in the United States for 2024 is 0.25.
Answer: True
Explanation: The minimum to median wage ratio in the United States was projected to be 0.25 in 2024.
The predictions of the standard supply and demand model regarding minimum wages are considered logically coherent by a minority of economists.
Answer: True
Explanation: Critics argue that the standard supply and demand model's predictions regarding minimum wages are not universally considered logically coherent, with some economists proposing alternative theoretical frameworks.
In mathematical models of the minimum wage, the 'free entry condition' signifies that the expected profit from a vacant job is zero.
Answer: True
Explanation: The 'free entry condition' in mathematical models of the minimum wage, denoted as \(\Pi_v = 0\), signifies that the expected profit derived from a vacant job is zero.
Which of the following represents a strategy companies might employ to circumvent minimum wage regulations?
Answer: Relocating operations to regions with lower wage requirements.
Explanation: Companies may attempt to circumvent minimum wage regulations by relocating operations to jurisdictions with lower or absent minimum wage requirements, or by utilizing gig workers.
How does the standard supply and demand economic model typically predict the effect of an increase in the minimum wage?
Answer: It predicts a decrease in the quantity of labor demanded, leading to unemployment.
Explanation: The standard supply and demand model typically predicts that an increase in the minimum wage, if set above the equilibrium wage, will lead to a reduction in the quantity of labor demanded by employers, resulting in unemployment.
According to the monopsony model, what potential outcome might arise from a moderate increase in the minimum wage?
Answer: An increase in both wages and employment.
Explanation: The monopsony model suggests that a moderate minimum wage increase could potentially lead to an increase in both wages and employment in markets where employers have significant wage-setting power.
What does the Kaitz index measure?
Answer: The ratio of the minimum wage to the median wage, adjusted for coverage.
Explanation: The Kaitz index measures the ratio of the minimum wage to the median wage, adjusted for the extent of minimum wage coverage within industries.
Which of the following is cited as a potential positive effect of minimum wage policies?
Answer: Boosting job growth and encouraging efficiency.
Explanation: Potential positive effects cited for minimum wage policies include boosting job growth and encouraging greater efficiency among firms.
What is a key argument advanced by proponents of wage subsidies as an alternative to minimum wage laws?
Answer: They can address poverty without causing unemployment.
Explanation: A key argument for wage subsidies is their potential to address poverty effectively without causing the unemployment often associated with minimum wage hikes.
Which of the following constitutes a criticism of the standard supply and demand model concerning minimum wages?
Answer: It is considered logically incoherent by some economists.
Explanation: A criticism leveled against the standard supply and demand model is that its predictions regarding minimum wages are considered logically incoherent by some economists.
Countries such as Sweden and Denmark primarily rely on collective bargaining agreements rather than national minimum wage laws to establish wage floors.
Answer: True
Explanation: Countries like Sweden and Denmark do not have national minimum wage laws; instead, they utilize collective bargaining agreements between employers and trade unions to determine wage levels.
A meta-analysis of 64 studies concluded that minimum wage increases did not consistently result in significant negative employment effects.
Answer: True
Explanation: A meta-analysis encompassing 64 studies indicated that minimum wage increases generally did not produce significant negative employment effects, with estimates clustering around zero.
In Australia, the Fair Work Commission holds the responsibility for establishing minimum wage rates.
Answer: True
Explanation: The Fair Work Commission in Australia is indeed responsible for setting the national minimum wage and industry-specific minimum wages.
A 2017 study examining Seattle's $13 minimum wage increase indicated a reduction in income for low-wage workers due to decreased hours.
Answer: True
Explanation: A 2017 study focused on Seattle found that the increase in the minimum wage to $13 per hour resulted in reduced income for low-wage workers, primarily because their hours of employment were curtailed.
The minimum wage in Lebanon in 2021 had substantially decreased in real value due to a financial crisis, rather than increasing.
Answer: True
Explanation: Due to a severe financial crisis and currency devaluation, Lebanon's minimum wage experienced a significant decline in real value by 2021.
Spain introduced its minimum wage in 1963, setting an initial monthly value of 1,800 pesetas.
Answer: True
Explanation: Spain's minimum wage was first introduced in 1963 with an initial monthly value of 1,800 pesetas.
A 2019 study concluded that minimum wage increases did not significantly impact the overall number of low-wage jobs.
Answer: True
Explanation: A 2019 study found that increases in the minimum wage did not exert a significant impact on the total number of low-wage jobs.
A $0.50 increase in the minimum wage was found to reduce the probability of an ex-incarcerated individual returning to prison by 2.15%.
Answer: True
Explanation: A 2021 study indicated that a $0.50 increase in the minimum wage correlated with a 2.15% reduction in the probability of an ex-incarcerated individual returning to prison.
South Korea's minimum wage system commenced implementation in 1988, following the enactment of the Minimum Wage Act in 1986.
Answer: True
Explanation: South Korea enacted its Minimum Wage Act in 1986, with the system beginning implementation on January 1, 1988.
The initial minimum wage in South Korea, implemented in 1988, was set at a level considerably lower than the wages of many other workers.
Answer: True
Explanation: During South Korea's economic boom period when the minimum wage system began in 1988, the initial minimum wage was set at a level significantly below the wages of many other workers.
A 2020 study estimated that a 10% increase in the minimum wage for grocery store workers resulted in an approximate 0.4% rise in grocery prices.
Answer: True
Explanation: A 2020 study estimated that a 10% increase in the minimum wage for grocery store workers led to a pass-through effect resulting in approximately a 0.4% increase in grocery prices.
Not all 27 member states of the European Union currently implement national minimum wage laws.
Answer: True
Explanation: While many EU member states have national minimum wage laws, several, such as Sweden and Denmark, rely on collective bargaining instead.
Which country is cited as being among the first to enact modern minimum wage legislation?
Answer: New Zealand
Explanation: New Zealand is cited as one of the first countries to enact modern minimum wage legislation, followed closely by Australia.
Which of the following European countries does not currently have a national minimum wage law?
Answer: Italy
Explanation: Italy is among the European countries that do not have a national minimum wage law, relying instead on collective bargaining agreements.
What did the 1992 study by Card and Krueger concerning minimum wage effects in fast-food restaurants suggest?
Answer: Minimum wage increases slightly boosted employment in New Jersey.
Explanation: The 1992 study by Card and Krueger suggested that a minimum wage increase in New Jersey led to a slight boost in employment within the fast-food sector.
What did a 2020 study estimate as the impact on grocery prices resulting from a 10% increase in the minimum wage for grocery workers?
Answer: A 0.4% increase in prices.
Explanation: A 2020 study estimated that a 10% increase in the minimum wage for grocery workers led to an approximate 0.4% increase in grocery prices.
What did a 2021 study find concerning the impact of a $0.50 minimum wage increase on criminal recidivism?
Answer: It reduced the probability of returning to prison by 2.15%.
Explanation: A 2021 study found that a $0.50 increase in the minimum wage reduced the probability of an ex-incarcerated individual returning to prison by 2.15%.
According to the source, which country exhibited the highest minimum to median wage ratio in 2024?
Answer: Colombia
Explanation: According to the provided data, Colombia had the highest minimum to median wage ratio in 2024.
What did surveys of economists reveal regarding their consensus on the effects of minimum wages prior to the mid-1990s?
Answer: A consensus that minimum wage increases led to a reduction in employment.
Explanation: Surveys indicated a strong consensus among economists before the mid-1990s that minimum wage increases resulted in reduced employment.
What did a 2021 study on McDonald's restaurants ascertain regarding the pass-through of minimum wage costs?
Answer: A 10% wage increase led to a 1.4% price increase.
Explanation: A 2021 study analyzing McDonald's restaurants found that a 10% increase in minimum wage costs resulted in approximately a 1.4% increase in the price of menu items.
What did the source indicate regarding the minimum wage in Lebanon as of 2021?
Answer: It had fallen to approximately $30 USD due to a financial crisis.
Explanation: As of 2021, Lebanon's minimum wage had drastically fallen to approximately $30 USD due to a severe financial crisis and currency devaluation.
The 'Authority control' section in the article does not provide bibliographic details for cited sources.
Answer: True
Explanation: The 'Authority control' section typically links to databases for subject identification and management, rather than providing bibliographic details for cited sources.
Which section of the article provides links to related topics such as labor economics and economic inequality?
Answer: See also
Explanation: The 'See also' section typically provides links to related articles, such as those on labor economics and economic inequality.
What is the primary function of the 'References' section within the article?
Answer: To list all sources cited within the article.
Explanation: The primary function of the 'References' section is to list all sources cited within the article, providing bibliographic details for verification and further study.