Which of the following is a statement of positive economics?
A) I hope unemployment comes down soon.
B) President X's way of dealing with unemployment is better than President Y's.
C) I think everyone should sacrifice to reduce the deficit.
D) If taxes are reduced, unemployment will drop.

Question

Quizplus · Accepted Answer

A statement of positive economics is based on facts and cause-and-effect relationships. Option D provides a causal relationship between tax reduction and a likely drop in unemployment, making it a statement of positive economics. Options A, B, and C, on the other hand, are normative statements based on personal opinions or preferences.

Which of the Following Is a Statement of Positive Economics