When the government sets a price floor on earnings, it is called which of the following?

employment guarantee

base-level wage

minimum wage

market equilibrium rate

The answer is minimum wage.

A price floor is:

a) The lowest price a consumer can pay for a good

OR

b) The lowest price a person can be paid for a certain service.

In this case, the United States government has a price floor, which is called minimum wage. The federal minimum wage ensures that Americans in certain industries can not be paid less than a certain hourly rate. Currently, it is $7.25 an hour. However, states can create their own minimum wage for their citizens as well.