Are the following statements positive or normative Economics

Are the following statements positive or normative Economics? Why?

a. Employers should not be required to offer pensions to their employees.

b. Employers offering pension benefits will pay lower wages than they would if they did not offer a pension program.

c. If further immigration of unskilled foreigners is prevented, the wages of unskilled immigrants already here will rise.

d. The military draft compels people to engage in a transaction they would not voluntarily enter into; it should therefore be avoided as a way of recruiting military personnel.

e. If the military draft were reinstituted, military salaries would probably fall.

Solution

a. Normative Because it states something that should n’t be done and normative economics is the study of ‘what should be’

b. Positive Because it is stating a fact and not an opinion and positive economics is the study of ‘what is’.

c. Positive Because it shows a sense of rationality between two choics that have both costs and benefits. If immigration were haulted there would be the beneficiary of higher wages yet a halt of immigration. At th same time if immigration were to increase it would allow further opportunities for workers yet perhaps at a lower wage.

4. Normative If military were to compel people into the military draft, the military gains the benefit of further men at the same time if forces low morality, as the people drafted aren’t necessarily volunteering encouragingly for the draft. In addition both parities would not mutually gain as the military is obviously gaining at the expenxe of other party, the drafted men.encouragingly

5. Positive Because it is stating a fact and not an opinion and positive economics is the study of ‘what is’.

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