Which of the following is an example of a positive economic statement?
A) The pricing policies followed in single-producer markets should be strictly supervised.
B) Unemployment is more harmful than inflation.
C) Higher interest rates will encourage more savings.
D) Pollution is one of the most serious economic problems.

Question

Quizplus · Accepted Answer

This is a positive economic statement because it is a statement of fact that higher interest rates will encourage more savings. It is an objective statement that can be tested or proved through research and analysis.

The other statements are normative economic statements because they express opinions and judgments about what should be done or what is desirable. For example, statement A suggests that pricing policies should be supervised, but it does not state whether this would be good or bad for the economy. Statement B suggests that unemployment is more harmful than inflation, but this is subjective and depends on individual perspectives. Statement D suggests that pollution is a serious economic problem, but it does not provide any objective evidence to support this claim.

Which of the Following Is an Example of a Positive