Question

Minimum wages have at least kept pace with the cost of living, because of the automatic cost-of-living adjustment clause in the law.

a) True
b) False

Answer 1

Minimum wages have not always kept pace with the cost of living due to the absence of an automatic cost-of-living adjustment clause in the law.

Step-by-step explanation:

The statement is false.

Minimum wages have not always kept pace with the cost of living due to the absence of an automatic cost-of-living adjustment clause in the law.

In the past, labor unions negotiated wage contracts with cost-of-living adjustments (COLAs) to ensure that wages kept up with inflation. However, minimum wage laws do not generally have the same COLA provisions.