Which of the following is a statement of positive economics?
A)The income tax reduces after-tax incomes of the rich.
B)A reduction in tax rates makes the after-tax distribution of income fairer.
C)Tax rates ought to be reduced so that people will work more.
D)All of the above are statements of positive economics.

Question

Which of the following is a statement of positive economics?
A)​The income tax reduces after-tax incomes of the rich.
B)​A reduction in tax rates makes the after-tax distribution of income fairer.
C)​Tax rates ought to be reduced so that people will work more.
D)​All of the above are statements of positive economics.

Quizplus · Accepted Answer

A statement of positive economics is a factual statement that can be proven or disproven. Option A is a statement of fact that can be verified, whereas options B and C express normative judgments about what ought to happen. D is incorrect because options B and C are normative statements, not positive ones.

Which of the Following Is a Statement of Positive Economics