Which of the Following Statements Are Positive and Which Are

question 41

Essay

Which of the following statements are positive and which are normative?
a.The minimum wage creates unemployment among young and unskilled workers.
b.The minimum wage ought to be abolished.
c.If the price of a product in a market decreases, then, other things equal, quantity demanded will increase.
d.A little bit of inflation is worse for society than a little bit of unemployment.
e.There is a tradeoff between inflation and unemployment in the short run.
f. If consumer income increases, then, other things equal, the demand for automobiles will increase.g. The U.S. income distribution is not fair.
h. U.S. workers deserve more liberal unemployment benefits.
i. If interest rates increase, then investment will decrease.j. If welfare benefits were reduced, then the country would be better off.

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Definitions:

Coefficient on Education

A statistical measure in regression that represents the change in the dependent variable resulting from a one-unit change in the level of education, all else being equal.

Significantly Different

A term used in statistics to indicate that the observed differences between groups or variables are too large to be attributed to chance alone, according to a predefined level of significance.

T-Statistic

A value derived from sample data that is used in a t-test to determine if there is a significant difference between two groups.

Coefficient on Income

A numerical measure, often used in regression analysis, that represents the change in an outcome variable associated with a one-unit change in income.