For Each of the Following, Note Whether the Statement Is

question 25

Essay

For each of the following, note whether the statement is an example of positive economic analysis or an example of normative economic analysis:
(a.) An increase in the minimum wage will lead to a higher rate of teenage unemployment.
(b.) If the government reduces the tax on tobacco, more individuals will start smoking.
(c.) The government should lower taxes because tax rates are too high for the average U.S. family.
(d.) Wealthy senior citizens can afford to buy their own health insurance and therefore should not be given Medicare coverage.
(e.) If the price of apples increases, people will buy more bananas.

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Definitions:

Future Sales

Projected revenue from selling goods or services over a future period.

Bottom-Up Budgeting

A budgeting approach where individual departments or units estimate their own expenses and revenues, which are then compiled to create an overall organizational budget.

Complex Budgeting

Complex budgeting involves the creation of an intricate financial plan that forecasts income, expenses, and capital for managing an organization's monetary resources over a specific period.