Which of the following is a listed benefit of minimum wage to businesses?

• A. Motivated workforce
• B. Higher stock prices
• C. Lower taxes for the business
• D. Less government regulation

Answer: (A)

Raising wages can make the workforce more motivated. When pay is fair and competitive, employees tend to be more engaged, reliable, and willing to put in extra effort. This can lead to lower turnover, reduced recruiting and training costs, and higher productivity, all of which are direct benefits for a business.

The other options aren’t direct outcomes of setting a minimum wage: stock prices depend on a wide range of market factors and aren’t guaranteed to rise because wages go up (higher wages can even reduce profits in some cases). Taxes and regulations aren’t determined by the wage level itself; they stem from government policy rather than wage floors.