"An Increase in the Federal Minimum Wage Will Provide a Living

question 220

Multiple Choice

"An increase in the federal minimum wage will provide a living wage for the working poor" is:

• A) a statement of positive economics.
• B) a fallacy of composition.
• C) a tautology.
• D) a statement of normative economics.

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Definitions:

Decision

The process of making choices among alternative courses of action.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future business decisions.

Future Costs

Costs that will be incurred in the future, impacting decisions on investments, production, and other business activities.

Relevant

Relates to or directly impacts the subject under discussion.