Which of the following is an example of a positive,as opposed to normative,statement?
A)Inflation is more harmful to the economy than unemployment is.
B)If welfare payments increase,the world will be a better place.
C)Prices rise when the government prints too much money.
D)When public policies are evaluated,the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.

Question

Quizplus · Accepted Answer

The statement "Prices rise when the government prints too much money" is a positive statement because it can be empirically tested and proven true or false. It is a statement of fact based on economic theory and historical data. The other statements are normative because they express subjective opinions or values about what is desirable or preferable, rather than making a factual claim that can be tested.

Which of the Following Is an Example of a Positive,as