The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement.
A) normative; normative
B) normative; positive
C) positive; normative
D) positive; positive
E) proper; improper

Question

Quizplus · Accepted Answer

The Secretary's statement is a positive economic statement because it is a factual claim about wage rates rising by 2 percent. The labor head's statement is also a positive economic statement because it is a factual claim about wage gains not keeping pace with a 3 percent inflation rate. Both statements can be tested and validated with data.

The Secretary of Labor States That Wage Rates in the Country