Which of the Following Are Positive Economic Statements and Which

question 72

Essay

Which of the following are positive economic statements and which are normative economic statements?
a.An increase in the minimum wage causes unemployment.
b.The government should raise the minimum wage above $7.25 per hour.
c.The prolonged recession has caused the unemployment rate to reach a 30-year high.
d.Interest rates need to be lower for the economy to emerge from the recession.
e.Inflation has decreased since the onset of the recession.
f.Once the recession has ended,interest rates should increase to assure that inflation does not go up.

---

Definitions:

Specification

A detailed description of the design, materials, quality, and performance standards that a product, service, or process must meet.

Supplier Enhancements

Improvements or upgrades provided by suppliers to increase the value or efficiency of their products or services.

Acceptable Value

The level of benefit or quality deemed satisfactory by a user or customer for a product or service.

Function

Represents the intended purpose or role that something is designed or expected to perform.