Which of the following is a statement of positive economics?
A) Too much government spending is the biggest problem facing the U.S. economy.
B) Creating jobs is the most serious problem facing the U.S. economy.
C) Raising taxes provides additional revenue that should be used to finance health care.
D) If taxes are over 50 percent of national income, job creation falls.

Question

Quizplus · Accepted Answer

Option D is a statement of positive economics because it presents a cause-and-effect relationship between taxes and job creation. It is a factual statement that can be tested through empirical analysis. On the other hand, options A, B, and C are normative statements because they express opinions about what should or should not be done, rather than describing economic realities.

Which of the Following Is a Statement of Positive Economics