Which of the following statements is an example of positive economics?
A) Unemployment is a more serious problem than inflation because we all need to work for money to survive.
B) Inflation is a more serious problem than unemployment,because we do not want our income to shrink with rising prices.
C) Immigration is bad for the economy because we allow new immigrants to get some of the better jobs.
D) Growth in income should be accomplished through government intervention.
E) If wages increase,firms may have to fire some of their workers.

Question

Quizplus · Accepted Answer

This statement describes a cause-and-effect relationship between wage increases and potential layoffs, which is an example of positive economics as it is based on observable, empirical data. The statement does not express a value judgment or opinion, which is characteristic of normative economics.

Which of the Following Statements Is an Example of Positive