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

Question

Quizplus · Accepted Answer

The Secretary of Labor's statement is positive because it describes an observable, factual situation regarding wage rates. The labor head's statement is also positive because it describes the factual situation of wage gains relative to inflation, without prescribing what should be done.

The Secretary of Labor States That Wage Rates in the Country