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:

Public Record

Documents or pieces of information that are not considered confidential and are available to the public.

Litigation

involves the process of taking legal action or resolving disputes in court between two or more parties.

Criticisms

Evaluations or judgments about the faults or shortcomings of a person, idea, or system, often with the intent of prompting improvement.

Arbitrations

Arbitrations are a form of alternative dispute resolution where a neutral third party, the arbitrator, makes a decision to resolve a dispute outside of court.