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:

Warren G. Harding

The 29th President of the United States, serving from 1921 until his death in 1923, known for his return-to-normalcy post-World War I policy.

Fraud and Bribery

Illegal practices involving deception for personal gain or influencing someone through corrupt means, often encountered in politics, business, and other fields.

Calvin Coolidge

The 30th President of the United States (1923–1929), known for his conservative economic policies and for overseeing a period of peace and prosperity in the 1920s.

Government-backed Price Supports

Financial mechanisms provided by governments to maintain the market price of specific goods or commodities at a predetermined level.