Economic policy of the government is often based on
A) microeconomic models.
B) educated guessing.
C) intuitive reasoning.
D) hints.
Question 2
Legislators argue that a minimum wage law is instituted to help poor people. Economists can attack the minimum wage law on two fronts. First, some argue that government should not help the poor. Second, some argue that minimum wage laws actually hurt the poor because it creates unemployment. Which argument is normative and which is positive?
What will be an ideal response?