Which of the following is a statement of positive economics?
A)New tax laws are needed to help the poor.
B)Teenage unemployment should be reduced.
C)We should increase Social Security payments to the elderly.
D)An increase in tax rates will reduce unemployment.
E)It is only fair that firms that are protected from competition by government-granted monopolies pay higher corporate taxes.

Question

Quizplus · Accepted Answer

This statement is a positive economic statement because it suggests that there exists a causal relationship between tax rates and employment levels, and can be tested or verified using empirical data.

Which of the Following Is a Statement of Positive Economics