Which of the following is a positive economic statement?
A) reducing unemployment should be the highest priority of the federal government.
B) a reduction in the payroll tax will reduce the unemployment rate.
C) corporations should be prohibited from laying off workers during a recession.
D) the current unemployment rate is too high.

Question

Quizplus · Accepted Answer

A reduction in the payroll tax will reduce the unemployment rate is a positive economic statement because it is a statement about the relationship between two economic variables (payroll tax and unemployment rate) that can be tested using economic data.

Which of the Following Is a Positive Economic Statement