Which of the following is an example of a positive economic statement?
A) Workers with families should be paid at least the minimum wage.
B) If crime rates were reduced, the world would be a better place in which to live.
C) Marginal tax rates should be reduced for individuals in the highest tax brackets.
D) An increase in the price of gasoline will cause a reduction in the amount purchased.

Question

Which of the following is an example of a positive economic statement?  
A) Workers with families should be paid at least the minimum wage. 
B) If crime rates were reduced, the world would be a better place in which to live. 
C) Marginal tax rates should be reduced for individuals in the highest tax brackets. 
D) An increase in the price of gasoline will cause a reduction in the amount purchased.

Quizplus · Accepted Answer

Option D is a positive economic statement because it describes a cause and effect relationship between an increase in gasoline prices and a reduction in the amount purchased. It is a statement of fact that can be supported by empirical evidence. The other options express normative opinions or speculative predictions, which are not positive economic statements.

Which of the Following Is an Example of a Positive