The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of
A) a normative economic statement.
B) a positive economic statement.
C) microeconomic analysis.
D) rational self-interest.

Question

Quizplus · Accepted Answer

The statement is a positive economic statement because it reports an actual increase in consumer prices and makes a factual claim about the potential rate of inflation based on that increase. It is not a normative statement, as it does not express an opinion or value judgment, nor is it an example of microeconomic analysis or rational self-interest.

The Statement in a Newspaper That "Consumer Prices Rose Last