Refer to Scenario 1

question 157

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 collection and use of the data on minimum wage and teenage unemployment over time is an example of

• A) law and economics.
• B) economic history.
• C) econometrics.
• D) empirical economics.

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Definitions:

Book Value Per Share

The financial measure that indicates the per-share value of a company's equity available to shareholders, calculated by dividing net assets by the total number of outstanding shares.

Total Market Value

The aggregate valuation of a company, measured by multiplying its current share price by its total outstanding shares.

Cost Of Goods Sold

Costs directly linked to manufacturing goods that a company sells, comprising expenditures on materials and labor.

Inventory Turnover

A proportion indicating the frequency with which a business has sold its inventory and replenished it within a specific timeframe.