Which of the following is an example of a positive economic statement?
A) The economy's real output increased at about 3 percent last year and the unemployment rate decreased.
B) A central bank should not print too much money because inflation could result.
C) Congress should stabilize the social security system by raising taxes now.
D) The government farm products surplus should be distributed to the needy.

Question

Quizplus · Accepted Answer

Option A is a positive economic statement because it describes a fact that can be measured objectively (a 3% increase in real output and a decrease in unemployment). The other options are normative statements, expressing opinions or values rather than objective facts.

Which of the Following Is an Example of a Positive