"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." What is this statement an example of?
A) a normative economic statement
B) the fallacy of composition
C) a positive economic statement
D) a negative economic statement

Question

Quizplus · Accepted Answer

The statement is a positive economic statement because it makes a cause-and-effect relationship between tax reduction and investment in the stock market, without any value judgment or opinion. It presents a factual observation based on economic analysis.

"A Reduction in the Rate at Which Stock Dividends Are