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.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence, serving as a starting point for further investigation.

Structuralism

A theoretical perspective in psychology that emphasizes understanding the structure of the mind by breaking it down into its component parts.

Functionalism

A school of psychology that focuses on the purpose and adaptive functions of human behavior and mental processes.

Sensations

Basic experiences resulting from the stimulation of the senses, including sight, sound, taste, touch, and smell.