An increase in the federal minimum wage causes an increase in unemployment among teenagers is a:
a. statement of positive economics. b. statement of normative economics.
c. testable value judgment. d. fallacy of composition.
QUESTION 2Select the positive statement that completes the sentence: If wages rise more rapidly than productivity:
a. profits will fall. b. workers will earn 3/4 of GDP.
c. the rate of inflation increases. d. all of these.
QUESTION 3Which of the following is a statement of positive economics?
a. Government control of rent is a fair way to help poor people afford housing.
b. Government control of rent keeps landlords from charging too much rent.
c. Government control of rent decreases the number of new apartments constructed.
d. Government control of rent is an injustice.
QUESTION 4Which one of the following is a positive economic statement?
a. An increase in the minimum wage will reduce employment for teenagers.
b. The minimum wage should be increased.
c. Social justice will be served by increasing the minimum wage.
d. Thoughtful people oppose an increase in the minimum wage.
QUESTION 5The statement, Violent crime has decreased in the last five years, is:
a. obviously wrong and, therefore, cannot be a positive statement.
b. normative since it can be answered by simply looking at the facts.
c. positive because it is testable.
d. not very interesting because all normative issues are of little importance.
QUESTION 6Which of the following represents a positive statement?
a. A higher income tax rate will reduce the amount of time that people spend working.
b. Teenage unemployment should be reduced.
c. We should raise the standard of living for the elderly.
d. A decrease in tax rates is needed to help the poor.
QUESTION 7Positive economics:
a. will usually tell us which policy is best.
b. reveals what ought to be in economic matters.
c. is of little use to policy makers.
d. is the scientific study of what is among economic relationships.
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