Refer to Scenario 1

question 128

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. The statement, "the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers," is an example of

• A) marginal economics.
• B) normative economics.
• C) positive economics.
• D) Ockham's razor.

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Definitions:

Organisational Resources

The assets, capabilities, and processes that an organization utilizes to achieve its objectives.

Conflicts Of Interest

Situations where an individual's or entity's personal interests may potentially interfere with their professional duties or responsibilities.

Bribe

An illicit payment made to influence someone's actions in favor of the giver.

Organisational Resources

Assets, capabilities, organisational processes, firm attributes, information, and knowledge controlled by an organisation that enable it to improve its efficiency and effectiveness.