Which of the following is a positive economic statement?
A)We should strive to achieve full employment in the United States.
B)The President of the United States should promote stable prices in the United States.
C)If the price of eggs increases, the quantity demanded of bacon will fall.
D)We should try to eliminate poverty in the United States.

Question

Quizplus · Accepted Answer

Option C is a positive economic statement as it reflects a cause and effect relationship where an increase in the price of eggs leads to a decrease in the quantity demanded of bacon. Positive economic statements are based on facts and aim to describe how the economy works without expressing any value judgments or opinions. Options A, B, and D express normative economic statements as they convey opinions about how the economy should behave, which is subjective and not based on facts.

Which of the Following Is a Positive Economic Statement