Which of the following is a positive economic statement?
A)Everyone should live at the same standard of living.
B)If the price of gasoline rises,a smaller quantity of it will be bought.
C)The government should close income tax loopholes.
D)U.S.firms should not be allowed to outsource production of goods and services.

Question

Quizplus · Accepted Answer

This statement describes a cause-and-effect relationship that is likely to be true and can be tested through empirical methods. It is a positive statement because it describes what is likely to happen in the economy, rather than expressing a value judgment or opinion.

The other three choices are normative statements, which express a personal belief or value judgment rather than making a factual claim about the economy.

Which of the Following Is a Positive Economic Statement