The economic analysis of minimum wage involves both normative and positive analysis. Consider the following statements regarding minimum wage: i. The federal minimum wage law causes unemployment. ii. The current federal minimum wage is $15 per hour (for non-tipped workers). iii. It would be impossible for low-skilled (i.e., non-college educated) workers to live comfortably in a large city without minimum wage laws. iv. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements? A. (i), (ii), and (iii) are positive statements and (iv) is a normative statement. O B. (i) and (ii) are positive statements, (iii) and (iv) are normative statements. OC. Only (i) is a positive statement, (ii), (iii), and (iv) are normative statements. D. (i) and (iii) are positive statements, (ii) and (iv) are normative statements. E. All are normative statements.

The economic analysis of minimum wage involves both normative and positive analysis. Consider the following statements regarding minimum wage: i. The federal minimum wage law causes unemployment. ii. The current federal minimum wage is $15 per hour (for non-tipped workers). iii. It would be impossible for low-skilled (i.e., non-college educated) workers to live comfortably in a large city without minimum wage laws. iv. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements? A. (i), (ii), and (iii) are positive statements and (iv) is a normative statement. O B. (i) and (ii) are positive statements, (iii) and (iv) are normative statements. OC. Only (i) is a positive statement, (ii), (iii), and (iv) are normative statements. D. (i) and (iii) are positive statements, (ii) and (iv) are normative statements. E. All are normative statements.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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