The Economic Analysis of Minimum Wage Involves Both Normative and Positive

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; d is a normative statement.
B) a and b are positive statements; c and d are normative statements.
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.