Which of the following is a positive economic statement?
A)The government ought to balance its budget and eliminate the deficit.
B)That company with a 50% profit rate made too much profit at the expense of consumers.
C)If the government raises taxes, people will have less income available for purchases and saving.
D)A 10% inflation rate is too high and should be reduced.

Question

Quizplus · Accepted Answer

Economic statements that can be tested and validated against facts are considered positive economic statements. Option C is a positive statement because it describes a cause-and-effect relationship that can be tested and validated through economic analysis.

Which of the Following Is a Positive Economic Statement