The economic analysis of minimum wage involves both normative and positive analysis.Consider the following consequences of a minimum wage: a.The minimum wage law causes unemployment.
B.Unemployment would be lower without a minimum wage law.
C.Minimum wage laws benefit some workers and harm others.
D.The minimum wage should be more than $7.25 per hour.
Which of the consequences above are positive statements and which are normative statements?
A)a,b,and c are positive statements and d is a normative statement.
B)a and b are positive statements,c and d are normative statement.
C)Only a is a positive statement,b,c,and d are normative statements.
D)a and c are positive statements,b and d are normative statements.

Question

Quizplus · Accepted Answer

Positive statements are objective and fact-based, focusing on describing or explaining phenomena without making judgments. Statements a, b, and c are positive because they describe the effects of minimum wage laws without expressing a value judgment. Statement d is normative because it prescribes what the minimum wage "should" be, reflecting a value judgment or opinion.

The Economic Analysis of Minimum Wage Involves Both Normative and Positive