The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 49

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.Unemployment would be lower without a minimum wage law.
C.Minimum wage laws benefit some workers and harm others.
D.The minimum wage should be more than $7.25 per hour.
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.

---

Definitions:

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Internalized Prejudice

The process by which individuals come to accept societal prejudices and stereotypes as true, often against their own social group.

Hostile Environment

A workplace or setting where harassing behavior is frequent or pervasive, making it difficult for individuals to work or feel comfortable.

Ageism

Discrimination or prejudice against individuals based on their age.