Final answer:
The statement about increasing the minimum wage is a positive statement, describing a testable claim about the world. It suggests a direct trade-off between wage levels and employment, and whether it is considered good or not involves subjective, normative considerations.
Step-by-step explanation:
The statement "Increasing the minimum wage decreases employment" is an example of a positive statement. Positive statements are objective claims that attempt to describe the world as it is, rather than how it should be. They can be tested and validated through observation or data. Therefore, this statement is making a claim about the economic outcome of increasing the minimum wage.
In terms of its economic implications, suppose a 5% increase in the minimum wage causes a 5% reduction in employment, this scenario would affect employers by potentially increasing their labor costs, leading to possible reductions in hiring or employee hours. On the other hand, workers who remain employed may benefit from higher wages, albeit within a potentially more competitive job market.
Whether this policy is considered good or not cannot be objectively determined since it involves value judgments and trade-offs, reflecting a normative consideration.