Which of the following is a positive economic statement?
A)The standard of living in the United States is too low.
B)If the price of beef falls, a larger quantity of it will be bought.
C)The government should implement a national consumption tax.
D)The U.S. government should increase regulations on the banking industry.

Question

Quizplus · Accepted Answer

This statement describes a potential relationship between price and quantity demanded and is thus a positive economic statement. Option A is a normative statement, as it expresses an opinion about what the standard of living should be, rather than describing what it currently is. Options C and D express policy prescriptions rather than describing economic phenomena or relationships.

Which of the Following Is a Positive Economic Statement