Which of the Following Are Positive Economic Statements and Which

question 148

Essay

Which of the following are positive economic statements and which are normative economic statements?
a.An increase in the minimum wage causes unemployment.
b.The government should raise the minimum wage above $7.25 per hour.
c.The prolonged recession has caused the unemployment rate to reach a 30-year high.
d.Interest rates need to be lower for the economy to emerge from the recession.
e.Inflation has decreased since the onset of the recession.
f.Once the recession has ended,interest rates should increased to assure that inflation does not go up.

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Definitions:

Intelligence

The skill to grasp, interpret, and employ data, tackle issues, and adapt to changes in circumstances.

Charles Spearman

A British psychologist known for his work in statistics and intelligence theory, notably for his proposal of the g factor, or general intelligence.

General Ability

General ability refers to the overall cognitive capacity of an individual, including elements such as memory, reasoning, problem-solving, and intelligence.

Intelligence

The capacity for absorbing lessons from past encounters, addressing difficulties, and leveraging insight to adapt to fresh scenarios.