Refer to Scenario 1.2 below to answer the question(s) that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. The statement that a 1% increase in the automobile emissions causes a 0.0003% increase in average global temperatures is an example of
A) positive economics.
B) marginal economics.
C) normative economics.
D) the fallacy of logic.

Question

Quizplus · Accepted Answer

The statement is an example of positive economics because it describes a cause-and-effect relationship based on empirical data, without making a value judgment. Positive economics deals with what is or what the impact of certain actions or policies will be, based on factual statements or hypotheses that can be tested.