A government minister states that wage rates in the country have risen by 2 per cent in the past year. The head of a trade union states that wage increases should have been higher. The Secretary's statement is a __________ economic statement, and the union leader's statement is a __________ economic statement.

Question

Quizplus · Accepted Answer

The government minister's statement that wage rates have risen by 2% in the past year is a positive economic statement, as it is a factual statement regarding an economic phenomenon. In contrast, the union leader's statement that wage increases should have been higher is a normative economic statement, as it expresses a subjective opinion or value judgment about what should have happened in the economy. Therefore, option C is the most appropriate answer.

A Government Minister States That Wage Rates in the Country