State the main reason why the minimum wage is set above the equilibrium wage by the minimum wage board?

Answer 1

The main reason why the minimum wage is set above the equilibrium wage by the minimum wage board is to ensure that workers are paid a fair and livable wage that allows them to meet their basic needs and maintain a decent standard of living. By setting the minimum wage higher than the equilibrium wage, the government aims to protect low-wage workers from exploitation and poverty, and to promote economic stability and equality in the labor market.