Better insurance benefits increase the incentive of some individuals to work. This statement is best described as
A) a positive statement.
B) an example of the ceteris paribus assumption.
C) a normative statement.
D) a comparative economics statement.

Question

Quizplus · Accepted Answer

This statement is a positive statement because it describes a relationship between insurance benefits and work incentives without making a judgment about whether this is good or bad. Positive statements are factual and can be tested or validated through observation or data.

Better Insurance Benefits Increase the Incentive of Some Individuals to Work