Which of the following statements is positive?
A)Tax increases tend to discourage saving.
B)Large budget surpluses should be avoided.
C)Higher taxes are needed to support education.
D)A tax cut that benefits high-income households is acceptable.

Question

Quizplus · Accepted Answer

Positive analysis aims at determining only the economic consequences of a particular event, not whether those consequences are desirable. Economic theory suggests, as you will learn later in this course, that tax increases tend to discourage saving.

Which of the Following Statements Is Positive