The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a
A) normative statement.
B) positive statement.
C) macroeconomic statement.
D) rational-decision statement.
E) marginal statement.

Question

Quizplus · Accepted Answer

This statement is a positive statement as it is based on empirical evidence and can be tested for validity. It describes an observable cause-and-effect relationship between increases in the tax on gasoline and increases in the price of gasoline.

The Statement That "Increases in the Tax on Gasoline Increase