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. a variable theory.
B. an economic theory.
C. an economic model.
D. inductive reasoning.
Answer: C
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Community Advisory Council (CAC).
What will be an ideal response?
If the MPC is 5/6 then the multiplier is
a. 6/5, so a $200 increase in government spending increases aggregate demand by $240. b. 5, so a $200 increase in government spending increases aggregate supply by $1000. c. 6, so a $200 increase in government spending increases aggregate demand by $1200. d. 6/5, so a $200 increase in government spending increases aggregate supply by $1200.
In late-2008, Congress rejected a proposed trade pact with Chile tied to
A. a bailout of the U.S. tobacco industry. B. an overhaul of the U.S. Postal Service. C. a rescue package for the U.S. auto industry. D. negotiations with Colombian drug lords.
Alternative approaches for reducing carbon dioxide emissions are
A) carbon taxes and carbon trading. B) carbon trading and carbon subsidies. C) carbon taxes and carbon scrubbing. D) burning low carbon coal and deforestation.