Which of the following is most closely associated with positive economics?
A) determining the impact of government spending on the actual level of total employment
B) determining the best level of immigration into the country
C) determining whether too many luxury goods are being produced
D) determining whether the government should reduce poverty
E) determining whether the government should alter income taxes in order to increase total employment

Question

Quizplus · Accepted Answer

Positive economics deals with describing and predicting economic phenomena as they occur in reality. Therefore, determining the impact of government spending on the actual level of total employment is a positive statement that can be tested and verified through empirical evidence. The other options involve normative statements about what should or should not be done, which are not the focus of positive economics.

Which of the Following Is Most Closely Associated with Positive