Understanding Minimum Wage Basics Steps:

• Recall the standard definition of minimum wage from economics.
• Evaluate each option against this definition and known economic principles.
• Check factual accuracy for specific claims like option C.
• Identify the option that precisely matches legal and economic facts without debate.

Why B is correct:

• By legal definition, minimum wage establishes the lowest wage employers must pay workers, preventing exploitation below that threshold.

Why the others are wrong:

• A: Minimum wage is a policy to raise low incomes but not necessarily "the correct" one, as it can cause unemployment if set too high.
• C: Pakistan's federal minimum wage was set at 14,000 PKR in 2016, not 15,000.
• D: Above-equilibrium minimum wage causes excess demand for jobs (unemployment), not excess supply of workers.

Final answer: B