Question

Which of the following statements are positive? The minimum wage creates unemployment among young and unskilled workers. The minimum wage ought to be abolished. If the price of a product in a market decreased, other things equal, quantity demanded will increase. A little bit of inflation is worse for society than a little bit of unemployment. There is a tradeoff between inflation and unemployment in the short run. If consumer income increases, other things equal, the demand for automobiles will increase. The U.S. income distribution is not equitable. U.S. workers deserve more liberal unemployment benefits. If interest rates increase, investment will decrease. If welfare benefits were reduced, the country would be better off.

Answer 1

Answer:

The minimum wage creates unemployment among young and unskilled workers.

If the price of a product in a market decreased, other things equal, quantity demanded will increase.

There is a tradeoff between inflation and unemployment in the short run.

If consumer income increases, other things equal, the demand for automobiles will increase

If interest rates increase, investment will decrease.

Explanation:

Positive statement is objective and statements are usually based on facts and economic theory. They can be tested.

It is a known fact that the higher the minimum wage, the lower the demand for labour and the higher the unemployment rate. this is because price varies inversely with demand

a tradeoff between inflation and unemployment in the short run is known as the Phillips curve

Normative statement is based value judgements, opinions and perspectives. For example, the statement - social welfare spending in Sweden occupies too large a portion of the national budget - is based on opinion. To some the expenditure might be even too small. There is no economic theory that can be used to determine if this expenditure is too large or small