Which of the Following Are Positive Economic Statements and Which

question 143

Essay

Which of the following are positive economic statements and which are normative economic statements?
a.An increase in the price of gasoline will decrease the quantity of gasoline purchased.
b.The government should eliminate the minimum wage.
c.All states should raise the minimum wage to at least $10 per hour.
d.The government should scrap its current income tax structure in favor of a flat tax.
e.Unemployment has increased since the onset of the recession.
f.The government should not bail out investment banks during a financial crisis.

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Definitions:

Squared Deviation

The squared differences between each observation and the mean, used as part of the calculation for variance.

Variance

A measure of the dispersion representing the average of the squared differences from the Mean.

Score

A numerical or categorical representation of a performance, achievement, or the outcome of an assessment.

Mean

The arithmetic average of a set of values, calculated by dividing the sum of the values by the number of values.