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 surplus of farm products should be distributed to the needy.

Question

Quizplus · Accepted Answer

A is a positive economic statement because it is a fact-based statement about what has occurred in the economy in the past year - an increase in real output and a decrease in unemployment rate. The other options (B, C, and D) are normative statements because they are offering opinions about what should or should not be done.

Which of the Following Is an Example of a Positive