The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 256

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; d is a normative statement.
• B) a and b are positive statements; c and d are normative statements.
• 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:

Conscious

The state of being awake and aware of one's surroundings and thoughts.

Explicit

Fully and clearly expressed or demonstrated, leaving nothing implied.

Repetition Priming

A cognitive phenomenon where the repeated presentation of a stimulus improves an individual's ability to respond to that stimulus.

Implicit Memory

A form of memory that occurs without conscious retrieval, affecting thoughts and behaviors based on previous experiences unconsciously.