Graph 21-1 -Refer to Graph 21-1.Advocates of Minimum Wage Legislation Would Suggest

question 51

Multiple Choice

Graph 21-1
-Refer to Graph 21-1.Advocates of minimum wage legislation would suggest that an effective minimum wage would be set at a level:

• A)below Wo, and employment would rise above Qo
• B)above Wo, and employment would fall below Qo
• C)above Wo, and employment would rise above Qo
• D)below Wo, and employment would fall below Qo

---

Definitions:

Economic Questions

Fundamental inquiries regarding how societies allocate resources, including what to produce, how to produce, and for whom to produce.

Curbing Pollution

Measures undertaken to reduce or eliminate the release of pollutants into the environment to protect ecological balance and public health.

Regulations

Rules and standards created and enforced by government agencies to control or govern conduct within various sectors, industries, and activities.

External Cost

Costs that result from economic activities and are not reflected in market prices, often borne by a third party or society at large.