The Minister for Employment states that wage rates in the country have risen by 2 per cent in the past year.The head of a local labour union argues that wages have to be increased more to match the 3 per cent rate of inflation.The Minister's statement is a _____ economic statement and the union head's statement is a _____ economic statement.

Question

Quizplus · Accepted Answer

The Minister's statement is a positive economic statement because it provides factual information about the rise in wage rates over the past year. The union head's statement is a normative economic statement because it suggests what ought to be done (i.e., increasing wages) to match the rate of inflation. Therefore, option C is the correct choice.

The Minister for Employment States That Wage Rates in the Country