Refer to Scenario 1

question 80

Multiple Choice

Refer to Scenario 1.1 below to answer the questions 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) the fallacy of composition.

---

Definitions:

Agreeableness

A personality trait that reflects the extent to which a person is cooperative, polite, friendly, and flexible versus cold, contentious, and confrontational.

Intellectual Openness

A willingness to consider new ideas, engage in critical thinking, and adopt novel approaches in learning and problem-solving.

Curiosity

A strong desire to know or learn something, fueling exploration and inquiry.

Originality

The quality of being novel or unique, especially in the context of creativity or inventiveness.