Question

Which one of the following is a positive economic statement? a. An increase in the minimum wage will reduce employment.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.

Answer 1

a: An increase in the minimum wage will reduce employment.

Step-by-step explanation:

A Positive Economic Statement refers to an objective statement that can be validated trough economic evidences.

When a Government increases the amount of the minimun wage, companies' labor expenses will rise, thus they will tend to make shorts to the number of employees.