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) ceteris paribus statement.
E) marginal statement.

Question

Quizplus · Accepted Answer

This statement is a positive statement because it describes a cause-and-effect relationship between two variables (tax on gasoline and price of gasoline) and can be tested and proven true or false through empirical evidence.

The Statement That "Increases in the Tax on Gasoline Increase