Question

The federal minimum wage is $7.25 per hour. The California minimum wage is $10.50 per hour. How do the differing minimum wages demonstrate the idea of federal government and its laws as a "ground floor" and the states as a "ceiling"?

a) Federal government sets the maximum wage, and states set the minimum.
b) States set the maximum wage, and the federal government sets the minimum.
c) Federal government sets the minimum wage, and states can choose to increase it.
d) States have no authority over minimum wage; it is solely determined by the federal government.

Answer 1

The federal minimum wage acts as a baseline price floor, and states can establish higher minimum wages. The correct answer is that the federal government sets the minimum wage, and states can choose to increase it.

Step-by-step explanation:

The differing minimum wages between the federal government and California demonstrate the concept of the federal minimum wage serving as a price floor and allowing states to establish higher wages if they deem it necessary. The correct answer to how these differing minimum wages demonstrate the relationship between federal and state laws is: c) Federal government sets the minimum wage, and states can choose to increase it. The federal minimum wage of $7.25 per hour acts as a baseline, ensuring that all workers in the country are paid at least this much. However, states have the authority to set higher minimum wages to reflect the cost of living and economic conditions in their jurisdictions, which is the case with California's $10.50 per hour minimum wage.