Which of the following is an example of a positive economic statement?
A) The government should ideally work as a welfare state.
B) An increase in income causes an increase in savings.
C) Economics is the most useful social science.
D) Eliminating poverty is more important than reducing inflation.

Question

Quizplus · Accepted Answer

B is a positive economic statement because it is a factual statement that can be tested and proven correct or incorrect through data and analysis. It does not express an opinion or normative statement about how things should be.

Which of the Following Is an Example of a Positive