Question

There is a conversation between two students, namely Megumi and Bill, in the English Plaza here:

Megumi: The 230-XYZ laws about minimum wage causes unemployment.

Bill: In response to the Covid-19 pandemic, the government should raise　the minimum wage.

Explain the different ways of language between Megumi and Bill claims!

Answer 1

Different ways of language between Megumi and Bill claims positive and normative statement.

Megumi's statement is an example of positive economics. Postive economic statement lays a fact based analysis. These statements are clear and easy to understand. In the given question, Megumi is telling that "230-XYZ laws about minimum wage causes unemployment." This statement is fact based, clear and easy to understand.

Bill's statement is an example if normative economics. Normative economics statement lays cause and effect relationship. It lays down suggestions that should be followed in order to solve a given problem. In the given question, Bill says, "In response to the Covid-19 pandemic, the government should raise the minimum wage." This statement is suggesting a response that should be done by the government in order to treat a problem. Hence, it is a normative approach.