A statement that argues that "if taxes on gasoline increase,gasoline consumption will decrease" is an example of what kind of statement?
A) a marginal statement
B) a macroeconomic statement
C) a normative statement
D) a positive statement
E) a statement that violates rational choice

Question

Quizplus · Accepted Answer

This statement is an example of a positive statement because it is a factual statement that can be tested and proven true or false through empirical evidence. It is not a normative statement which expresses an opinion or judgment about what ought to be done. It is also not a marginal statement which refers to the changes that occur when an additional unit is added or subtracted. It is not a macroeconomic statement because it does not refer to the economy as a whole but only to the specific issue of gasoline consumption. It does not violate rational choice because it assumes that people will respond to incentives, which is a basic principle of economics.

A Statement That Argues That "If Taxes on Gasoline Increase,gasoline