Saul Hoffman's scientific journal paper published in 2015 in Societies explores the relationship between two topics that at the surface are very distant from each other. As he goes on to state, "It is relatively easy, at least for an economist, to see why economists would be attracted to issues like teen pregnancy and teen childbearing, despite their apparent distance from the core topics of economics. First, economics especially microeconomics is fundamentally the study of choices that individuals make, traditionally and most often in formal markets with monetary prices, but now more and more frequently outside that sphere. Viewed from that perspective, choices involving sexual and fertility behavior among teens are an incredibly challenging, but
inviting, target. Is it possible to identify the role of economic incentives, including government policy, on these behaviors? Is it sensible to apply traditional models of rational choice decision-making to teens?
Second, the traditional concern about teen fertility was predicated on the notion that it was an economically catastrophic act. In a famous and oft-quoted 1968 article, Arthur Campbell wrote that 'The girl who has an illegitimate child at the age of 16 suddenly has 90 percent of her life's script written for her,' including reduced opportunities for schooling, the labor market, and marriage. But it doesn't take too much reflection to appreciate that more may be going on in leading to these poor outcomes than just a teen birth. Disentangling the causal effect of teen childbearing on subsequent socio-economic outcomes from its correlational effect is another deliciously inviting and challenging target, this time well-suited for the applied economist or econometrician.
Just to make all this yet more inviting, the two research strands are closely related. Suppose it could be demonstrated that for some teens the socio-economic impact of a teen birth was negligible. For example, maybe future prospects for some teens were equally poor with or without a birth or perhaps government programs provided substantial benefits, so that the net impact on socio-economic well-being was consequently small or even positive. Then, it might well be 'rational' in an economic sense to have a teen birth in the first place, thereby linking the research on the causal impact of a teen birth with the research on the choice determinants of a teen birth. So what came to be known as the teen birth `causes' literature and the teen birth `consequences' literature were clearly interrelated.
And then, to add yet another layer of challenge, the teen fertility rate in the U.S. has fallen at a rate that is totally unprecedented. Teen fertility was once widespread, with most of it occurring within early and sometimes not entirely voluntary marriage. In 1960, the teen fertility rate was approximately 90 births per 1000, which implied that more than 40% of women ever had a teen birth. When I published my first article on teen births 25 years ago, the teen fertility rate was 60 births per 1000, down one-third from 1960, but it had increased six years in a row in what turned out to be a deviation from the downward trend. Since then the rate has declined every single year, except for a short but puzzling uptick between 2005 and 2007. In 2014, the teen fertility rate was 24.2 births per 1000, the lowest teen fertility rate ever recorded in the U.S., though still shockingly high by European standards. Thus, the rate fell by more than 50% during my professional association with the topic and by 70% since 1960. Of course, at the same time teen marital births largely disappeared, falling from 85% of teen births to 12%.
This adds yet another focus for economic research. Why did the rate fall? Did it have anything to do with changes in the costs of teen childbearing or changes in policy? Is it a good thing or not?
In this article I try to make sense out of these various research strands by providing a personal narrative through the economics literature on teen childbearing, with a special emphasis on the three issues discussed above. My goal is to make the literature, including some reasonably technical content, accessible and valuable to a non-economist."
Hoffman, S. (2015). Teen Childbearing and Economics: A Short History of a 25-Year Research Love Affair.
Societies, 5(3), 646-663. doi:10.3390/soc5030646
According to passage information, a scholar interested in microeconomics might study all of the following EXCEPT:
- which environmental factors make a city dweller more likely to litter.
- the reasons behind college students' choices to spend their time studying vs. socializing.
- how divorce influences real estate prices and choices.
- how recent college graduates prioritize cost versus convenient location in choosing an apartment.
Answer(s): C
Explanation:
This Reasoning-Beyond-the-Text question asks you to understand the passage definition of microeconomics.
We are told it is "the study of choices that individuals make, traditionally and most often in formal markets with monetary prices, but now more and more frequently outside that sphere." This option mentions choices, but is primarily focused on large-scale markets, (not on the reasons behind individual actions) and their relationship to the variable "divorce".
A incorrect. This concerns individual choices and outside influence on them.
B This is incorrect. This concerns a cost-benefit analysis over how to use a limited resource, in this case, time, and how this influences the choice that college students ultimately make.
D incorrect. This is another example of studying how people with limited resources rank various priorities in order to arrive at an economic choice.
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