Which of the following is a positive economic statement?
A) We should raise the minimum wage in order to provide a decent wage for more people.
B) Consumers bought fewer cars when the relative price of cars increased.
C) The budget deficit has been rising in recent years.
D) Federal government spending ought to be curtailed.
E) b and c

Question

Quizplus · Accepted Answer

Positive economic statements are objective and fact-based, whereas normative statements are subjective and value-based. Choice B, stating a fact about consumer behavior, and choice C, stating a fact about the budget deficit, are both examples of positive economic statements. Choices A and D express what ought to be done, making them normative statements.

Which of the Following Is a Positive Economic Statement