Consider the following statements, based on a positive economic analysis that assumes that all other things remain constant. For each, list one other thing that might change and thus offset the outcome stated.
Consider the following statements, based on a positive economic analysis that assumes that all other things remain constant. For each, list one other thing that might change and thus offset the outcome stated. Increased demand for laptop computers will drive up their price. Falling gasoline prices will result in additional vacation travel. A reduction of income tax rates will result in more people working. 2. Categorize each of the following conclusions as being the result of positive analysis or normative analysis. A higher minimum wage will reduce employment opportunities for minimum wage workers. Increasing the earnings of minimum wage employees is desirable, and raising the minimum wage is the best way to accomplish this. Everyone should enjoy open access to health care. Health care subsidies will increase the consumption of health care.
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