Which of the Following Statements Are Positive,and Which Are Normative

question 121

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 U.S.income distribution is not equitable.
h.U.S.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:

Net Worth

The total assets minus total external liabilities of an individual or a company, indicating their overall financial position.

Liabilities

Financial obligations or debts owed by a company or individual to others, which must be settled over time through the transfer of economic benefits.

Non-Interest-Bearing Reserve Deposits

Bank reserves held in a central bank that do not earn any interest for the commercial bank.

Legal Reserves

Funds that banks are legally required to hold in reserve against deposits made by their customers, either as cash in the bank or as deposits in the central bank.