Are the following statements using positive analysis or normative analysis? Whic

Question

Are the following statements using positive analysis or normative analysis? Which of these predictions can be tested with empirical data and how can the tests be conducted?

A) "increasing the minimum wage would reduce employment of minority teenagers."
B) "increasing the minimum wage would represent an unwarranted interference with private relations between workers and their employees."
C) "increasing the minimum wage would raise the incomes of some unskilled workers."
D) "increasing the minimum wage would benefit higher-wage workers and would probably be supported by organized labor."

Explanation / Answer

A) "increasing the minimum wage would reduce employment of minority teenagers." Positive we could use regression analysis B) "increasing the minimum wage would represent an unwarranted interference with private relations between workers and their employees." Normative and we could use correlation analysis C) "increasing the minimum wage would raise the incomes of some unskilled workers." Positive and use regression D) "increasing the minimum wage would benefit higher-wage workers and would probably be supported by organized labor." normative and again use regression then correlation to check how much the variable explains the model and dependent variable Hope this helps

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