Which of the Following Are Positive Economic Statements and Which

question 133

Essay

Which of the following are positive economic statements and which are normative economic statements?
a.An increase in the price of petrol will decrease the quantity of petrol 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 favour 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:

Workforce Entrants

Individuals who are newly entering the job market, either for the first time or after a significant break.

Procedural Justice

The fairness perceived in the processes and procedures used to make decisions and allocate resources.

Corporate Restructuring

The process of reorganizing a company's structure and operations, often to improve efficiency, competitiveness, or financial health.

Feelings of Inequity

Emotional responses that arise when an individual perceives an imbalance or unfairness in their work environment, especially in terms of rewards and contributions.