
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 21
The following conversation was heard among four economists discussing whether the minimum wage should be increased:
Economist A. "Increasing the minimum wage would reduce employment of minority teenagers."
Economist B. "Increasing the minimum wage would represent an unwarranted interference with private relations between workers and their employers."
Economist C. "Increasing the minimum wage would raise the incomes of some unskilled workers."
Economist D. "Increasing the minimum wage would benefit higher-wage workers and would probably be supported by organized labor."
Which of these economists are using positive analysis and which are using normative analysis in arriving at their conclusions? Which of these predictions might be tested with empirical data? How might such tests be conducted?
Economist A. "Increasing the minimum wage would reduce employment of minority teenagers."
Economist B. "Increasing the minimum wage would represent an unwarranted interference with private relations between workers and their employers."
Economist C. "Increasing the minimum wage would raise the incomes of some unskilled workers."
Economist D. "Increasing the minimum wage would benefit higher-wage workers and would probably be supported by organized labor."
Which of these economists are using positive analysis and which are using normative analysis in arriving at their conclusions? Which of these predictions might be tested with empirical data? How might such tests be conducted?
Explanation
Positive economics is the branch of econ...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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