Which of the following is an example of a positive economic statement?
A) In order to reduce the budget deficit, tax rates should be increased.
B) In order to increase employment, the minimum wage must be decreased.
C) If payroll taxes are raised, then the government budget will show a surplus.
D) If gas prices fall, consumers should purchase more gas.

Question

Quizplus · Accepted Answer

This statement describes a cause-and-effect relationship between raising payroll taxes and resulting in a surplus in the government budget, without expressing any normative judgement on whether this outcome is desirable or not.

Which of the Following Is an Example of a Positive