Identify positive and normative economic statements.

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Is the minimum wage helpful to the long-term development of society? Explanation:According to my reasearch, I found that a lot of data shows that the increase of minimum wages benefits a large amount of workers, but it also has a negative side. For example, it will create unemployment and raise the price, which brings hurt to some families, especially for some very low-income families. So, do you think that if increassing minimum wage is a really feasible or helpful way to improve the society as a whole?

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Chapter 1.6, Problem 2.1YTE

To determine

Identify positive and normative economic statements.

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Is the minimum wage helpful to the long-term development of society? Explanation:According to my reasearch, I found that a lot of data shows that the increase of minimum wages benefits a large amount of workers, but it also has a negative side. For example, it will create unemployment and raise the price, which brings hurt to some families, especially for some very low-income families. So, do you think that if increassing minimum wage is a really feasible or helpful way to improve the society as a whole?

Suppose a binding minimum wage is imposed on the labor market, then basic microeconomics predicts that, a shortage of labor will occur, hence unemployment increases. a surplus of labor will occur, hence unemployment increases. a shortage of labor will occur, hence unemployment decreases. a surplus of labor will occur, hence unemployment decreases.

Is the minimum wage a good policy? Should the government increase the minimum wage or maintain it at its current rate or abolish it altogether.