A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

Question

Quizplus · Accepted Answer

A positive economic statement is a statement of fact that can be tested through observation or data analysis. In this statement, the relationship between pollution taxes and the quantity of pollution generated is empirical and can be evaluated through data analysis. It does not require values or subjective judgments to be evaluated, only data. Therefore, choice C is the best answer. Choices A and D are incorrect because they imply a role for values or personal opinions that is inconsistent with the scientific nature of positive economic statements. Choice B is also incorrect because it suggests that values are necessary to evaluate positive economic statements, which is not the case.

A Positive Economic Statement Such as "Pollution Taxes Decrease the Quantity