Final answer:
The federal minimum wage rate is $7.25 per hour. This price floor was set in 2009, and despite being a federal baseline, some states have higher rates to account for the cost of living. Therefore, correct option is D.
Step-by-step explanation:
The federal minimum wage rate as of 2016 is $7.25 per hour. This rate was established in mid-2009 and is a price floor in the labor market, ensuring that employees receive a minimum hourly wage from their employers. Although some states and localities have set higher minimum wage rates, $7.25 remains the baseline at the federal level.
The concept behind the minimum wage is that individuals working full time should be able to afford a basic standard of living above the federal poverty line.
However, the minimum wage has not kept pace with the cost of living, which has led to discussions about living wages and the need to increase the minimum wage to ensure a reasonable standard of living for workers.