Which of the following is a positive economic statement?
A) The federal minimum wage should be raised to $6.50 per hour.
B) The United States spends too much on anti-terrorism efforts.
C) An increase in investment will lead to a higher rate of economic growth.
D) Economics is twice as interesting to study as philosophy.

Question

Quizplus · Accepted Answer

Option C is a positive economic statement because it presents a cause-and-effect relationship between investment and economic growth without expressing a value judgement. Options A and B are normative statements because they express opinions about what policies should or should not be implemented. Option D is not an economic statement at all, but rather a subjective opinion.

Which of the Following Is a Positive Economic Statement