The Economic Analysis of Minimum Wage Involves Both Normative and Positive

question 49

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

Physiological Needs

Physiological needs are the basic necessities of life required by the body for survival, including food, water, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Self-Transcendence

Describes the experience of going beyond one's own self-interests, limitations, and experiencing a greater sense of connection to others and the world.

Protein

Large, complex molecules essential to the structure, function, and regulation of the body's tissues and organs, made up of amino acids.

Fat Cells

Biological cells that store energy in the form of fat, also known as adipocytes, playing critical roles in metabolism and energy homeostasis.