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.

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Definitions:

Dispersed Collective Behaviours

Group behaviors that are spread out across vast distances, often mediated through technology, lacking a centralized physical location.

Collective Behaviours

Actions and norms that are developed by a group and differ from the usual social conventions, often arising in response to an event, situation, or collective mood.

Evolutionary Theory

Evolutionary Theory is a scientific theory that explains the diversity of life on Earth, positing that species change over time through processes such as natural selection and genetic mutation.

Genetic Evolution

The process by which the inherited features of an organism change over generations through mechanisms such as mutation, natural selection, and genetic drift, leading to biodiversity.