Refer to Scenario 1

question 184

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 statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of

• A) equity.
• B) normative economics.
• C) positive economics.
• D) Ockham's razor.

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Definitions:

Cow's Milk Allergy (CMA)

An immune system response triggered by cow's milk proteins, leading to various allergic symptoms in individuals.

Nutramigen

A hypoallergenic infant formula intended for babies with milk protein allergy or intolerance, facilitating easier digestion.

Substitute Formula

An alternative nutritional preparation given to infants when breastfeeding is not possible, designed to mimic human breast milk.

Toxic Reaction

An adverse response of the body to the presence of a toxic substance, leading to symptoms that can range from minor (such as a rash) to severe (such as organ damage or death).