The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 161

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, it would be impossible for low-skilled workers to live comfortably in the city without minimum wage laws.
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:

Fattism

Prejudice or discrimination against people perceived to be overweight or obese.

Gender-bending

The act of defying or questioning traditional gender roles and norms through one's appearance, behavior, or identity.

Female Role

The set of societal expectations, behaviors, and activities traditionally associated with women or considered appropriate for women within a specific culture.

Androgyny

The combination of masculine and feminine characteristics into an ambiguous form, often related to fashion, sexuality, and identity.