The Minister for Employment states that wage rates in the country have risen by 2 per cent in the past year. The head of a local labour union argues that wages have to be increased more to match the 3 per cent rate of inflation. The Minister's statement is a _____ economic statement and the union head's statement is a _____ economic statement.

Question

Quizplus · Accepted Answer

The Minister's statement that wage rates have risen by 2% is a positive economic statement as it is a statement of fact based on data. On the other hand, the union head's statement is a normative economic statement as it involves a value judgment on what wage increases should be to match the rate of inflation. Therefore, option C is the correct answer as the Minister's statement is positive and the union head's statement is normative.

The Minister for Employment States That Wage Rates in the Country