"Employment fell last month to its lowest level in the last six years" is an example of:
A)the fallacy of composition.
B)positive economics.
C)normative economics.
D)none of the above

Question

"Employment fell last month to its lowest level in the last six years" is an example of:
A)​the fallacy of composition.
B)​positive economics.
C)​normative economics.
D)​none of the above

Quizplus · Accepted Answer

The statement is an example of positive economics, as it is a factual statement about the current state of employment. The fallacy of composition pertains to making assumptions about the whole based on individual parts, and normative economics involves making value judgments or recommendations about how things ought to be.

"Employment Fell Last Month to Its Lowest Level in the Last