Which of the following is a positive economic statement?
A) Reducing unemployment should be the highest priority of the federal government.
B) An increase in unemployment benefits will increase the unemployment rate.
C) Corporations should be prohibited from laying off workers during a recession.
D) Congress should increase unemployment benefits during a recession.

Question

Quizplus · Accepted Answer

A positive economic statement is a statement that can be proven or tested through data and facts. Option B is a positive economic statement as it suggests a cause-effect relationship that can be tested by analyzing data on unemployment benefits and the unemployment rate. Options A, C, and D are normative economic statements as they express an opinion or a value judgment on what the government should do and cannot be proven or tested through data and facts.

Which of the Following Is a Positive Economic Statement