Which of the following is a positive statement?
A) When the price of a good goes up, consumers buy less of it.
B) When the price of a good goes up, firms produce more of it.
C) When the Federal government sells bonds, interest rates rise and private business investment is reduced.
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

All the statements (A, B, C) are positive statements because they describe relationships between economic variables without making a judgment about whether those relationships are good or bad. They are based on observable phenomena and can be tested for accuracy.

Which of the Following Is a Positive Statement