An effective minimum wage is set

A) above the equilibrium level.
B) below the equilibrium level.
C) at the equilibrium level.

An effective minimum wage is set above the equilibrium level to ensure that workers receive a fair wage and to reduce the exploitation of workers by employers. If the minimum wage were set at or below the equilibrium level, it would not have any effect on wages and would be ineffective in reducing exploitation. By setting the minimum wage above the equilibrium level, it creates a price floor that puts upward pressure on wages, allowing workers to earn a higher wage and have a better standard of living. However, there may be adverse effects on employment levels, as employers may have to reduce their workforce to offset the increased labor costs.