The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 110

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:

Dehydration

The condition resulting from the excessive loss of body water.

Venipuncture

The puncturing of a vein, typically to withdraw blood or for intravenous therapy.

Atraumatic Care

A healthcare approach aimed at minimizing or eliminating physical and psychological trauma to patients during medical procedures and interactions.

Aspiration

The inhalation of food, liquid, or other objects into the lungs, which can cause respiratory distress or infection.