The statement that 'increases in the tax on petrol increase the price of petrol' is an example of a
A)rational-decision statement.
B)marginal statement.
C)normative statement.
D)macroeconomic statement.
E)positive statement.

Question

Quizplus · Accepted Answer

The statement is a positive statement because it describes a cause-and-effect relationship between two economic variables without expressing any subjective value judgments.

The Statement That 'Increases in the Tax on Petrol Increase