Legislators argue that a minimum wage law is instituted to help poor people. Economists can attack the minimum wage law on two fronts. First, some argue that government should not help the poor
Second, some argue that minimum wage laws actually hurt the poor because it creates unemployment. Which argument is normative and which is positive?
An opinion about the role of government is a normative statement. An observation about the impact of a law is a positive statement.
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Since the late 1970s, the United States
A) has experienced only moderate inflation, usually between 2 to 3 percent. B) has seen a steadily increasing rate of inflation. C) has experienced low inflation, except for a seven-year period between 1979 and 1986. D) has experienced high inflation followed by a long period of deflation.
Which of the following is likely to occur when it is known that a two-person game is to be played only once?
a. Collusion b. The demand curve becomes perfectly inelastic for this time period c. The prisoner's dilemma d. The pursuit of profit maximization for the entire industry e. An attempt to equate marginal revenue with marginal cost