Refer to Scenario 1

question 45

Multiple Choice

Refer to Scenario 1.1 below to answer the question(s) that follow.
SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers.
-Refer to Scenario 1.1. A graph of the value of the minimum wage on one axis and the level of teenage unemployment on the other axis is an example of

• A) an economic theory.
• B) an economic model.
• C) inductive reasoning.
• D) a variable theory.

---

Definitions:

Memory Decay

The gradual fading of memory traces as a result of the passage of time and lack of use of the encoded information.

Memory Span

The amount of information an individual can retain and recall in short order, typically measured in terms of the number of items, like numbers or words.

Knowledge Base

A knowledge base is a centralized repository of information, including facts, documentation, and data, used to support decision-making, problem-solving, and information retrieval processes.

Memory Capacity

The amount of information that can be held in the memory system at one time, including short-term and long-term storage capabilities.