Which of the Following Statements Are Positive, and Which Are

question 40

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, 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, other things equal, the demand for automobiles will increase.g. The Canadian income distribution is not equitable.h. Canadian workers deserve more liberal unemployment benefits.
i. If interest rates increase, investment will decrease.j. If welfare benefits were reduced, the country would be better off.

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Definitions:

Production Technology

The quantitative relationship between inputs and outputs.

Input Demand

Input demand refers to the quantity of goods and services a firm requires to produce its own products, often influenced by the price of these inputs and the firm's level of output.

Normal Return

The typical profit that is expected from a standard investment or business activity, accounting for the cost of capital.

Computer Software

Programs and operating information used by a computer to perform specific tasks.