A positive economic statement such as "Pollution taxes decrease the quantity of pollution firms generate"
A)would likely be made by an economist acting as a policy adviser.
B)would require values and data to be evaluated.
C)would require data but not values to be evaluated.
D)could not be evaluated by economists acting as scientists.

Question

Quizplus · Accepted Answer

A positive economic statement can be evaluated based on evidence and data, without requiring any value judgments. The statement in question relates to a observable cause-and-effect relationship that can be studied empirically. Therefore, it only requires data to be evaluated, not values.

A Positive Economic Statement Such as "Pollution Taxes Decrease the Quantity