When an Economist Is Asked a Question Like "Why Is

question 14

Multiple Choice

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

• A)is asked to explain the cause of an economic event.
• B)is asked to recommend a policy to improve economic outcomes.
• C)is asked as a policy adviser.
• D)does not have enough information to respond.

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Definitions:

2008 Financial Crisis

A global financial downturn initiated by the collapse of the housing bubble in the United States, leading to widespread economic hardship.

Subprime Mortgages

Loans given to borrowers with lower credit scores at higher interest rates than standard mortgages, significantly contributing to the 2008 financial crisis.

Unemployment Rate

A measure of the percentage of the workforce that is jobless and actively looking for employment.

African-Americans

People of African descent living in the United States, historically subject to slavery and segregation, and now a vital part of the nation’s cultural and social fabric.