If the Minimum Wage Is Set Above the Equilibrium Wage

question 269

Multiple Choice

If the minimum wage is set above the equilibrium wage, a supply and demand diagram of the low-skilled labor market will show unemployment as

• A) a vertical distance.
• B) a horizontal distance.
• C) the area of a rectangle.
• D) the area of a triangle.

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Definitions:

Cap and Trade

A market-based approach to controlling pollution that allows companies to buy and sell emission allowances to meet environmental regulations.

Internalize

Refers to the process of incorporating external costs or benefits into a company's decision-making process.

ISO 14000

A family of standards related to environmental management systems and tools designed to help organizations minimize negative effects on the environment.

Sustainability

The capacity for systems, processes, and activities to maintain themselves over time and minimize negative environmental impacts.