The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 22

Multiple Choice

The economic analysis of minimum wage involves both normative and positive analysis.Consider the following consequences of a minimum wage:
a) The minimum wage law causes unemployment.
b) A minimum wage law benefits some groups and hurts others.
c) In some cities such as San Francisco and New York, minimum wage laws are necessary for low-skilled workers to stay in the city.
d) The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses.
Which of the consequences above are positive statements and which are normative statements?

• A)a, b, and c are positive statements and d is a normative statement.
• B)a and b are positive statements, c and d are normative statement.
• C)Only a is a positive statement, b, c and d are normative statements.
• D)a and c are positive statements, b and d are normative statements.

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Definitions:

Fearful Avoidant Attachment

Style of attachment in which people have both high anxiety and high avoidance; they have low opinions of themselves and keep others from getting close.

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.

Self-Love

Self-love is the regard for one’s own well-being and happiness, often considered as a crucial part of mental health and emotional resilience.

Fearful Avoidant Attachment

A type of attachment characterized by a desire for close relationships but a fear of getting too close or being too dependent on others.