Final answer:
The government enacts a minimum wage to improve workers' welfare by ensuring fair pay that matches living standards, rather than to reduce unemployment, increase inflation, or control market competition.
Step-by-step explanation:
When the government enacts a minimum wage, it is attempting to improve workers' welfare by ensuring they earn a wage that is sufficient to live on. The establishment of a minimum wage sets the lowest legal amount that can be paid to workers, which is intended to protect them from unduly low pay that does not meet basic living standards.
While some believe that a higher minimum wage can lead to increased prices or discourage businesses from hiring, others argue that it increases the buying power of workers, which can stimulate the economy.