Positive and normative arguments of business leaders about oppose and favor to raise the minimum wage.

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Chapter 1.6, Problem 2.2YTE

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Positive and normative arguments of business leaders about oppose and favor to raise the minimum wage.

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Description Does raising the minimum wage reduce employment, that is, does it increase job loss? Who benefits the most from an increase in the minimum wage? What effect might your answers have on the normative analysis of the minimum wage?

In economics, the difference between normative and positive is that:

The economic analysis of minimum wage involves both normative and positive analysis. Consider the following statements regarding minimum wage: i. The federal minimum wage law causes unemployment. ii. The current federal minimum wage is $15 per hour (for non-tipped workers). iii. It would be impossible for low-skilled (i.e., non-college educated) workers to live comfortably in a large city without minimum wage laws. iv. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements? A. (i), (ii), and (iii) are positive statements and (iv) is a normative statement. B. (i) and (ii) are positive statements, (iii) and (iv) are normative statements. C. Only (i) is a positive statement, (ii), (iii), and (iv) are normative statements. D. (i) and (iii) are positive statements, (ii) and (iv) are normative statements. E.…