b. One is a hypothesis, like “unemployment is caused by a decrease in GDP.” This claim can be tested empirically by analyzing the data on unemployment and GDP. The government should reduce funding for social assistance programs. (a) The extent of wealth inequality in 30 years (b) The level of unemployment is too high. The first type of activity is economic science, based on theories and evidence, where researchers attempt to determine how the world (or at least the economy) works. d. Thoughtful people oppose an increase in the minimum wage. Question 9 5 out of 5 points Which of the following is a positive economic statement? Law X is a good piece of legislation. In this quiz and worksheet combo, you'll be tested on normative and positive economic statements. There are social and economic inequalities in our country. Which one of the following is a positive economic statement? A) Everyone should live at the same standard of living. It doesn't only have to be a statement about the past though. 17. The positive economic statement is totally based on fact while the normative statement is based on the value of judgment. A statement of fact or a hypothesis is a positive statement. Also the statement of a theory, and it's effects on the economy is a positive statement. Which of the following is a positive economic statement? The U.S. public should devote more resources to education. As such, they can be tested. (b) The government should ban diesel engines in … When values or opinions come into the analysis, then it is in the realm of normative economics. The price of steel declined by 3% last year. Positive Economics deals with What Is i.e. Which one of the following is a positive economic statement? Positive economic statement - it is referred to as the statement that can be tested, validated on the basis of available evidence. A positive statement, on the other hand, is a factual statement. Which of the following is a positive macroeconomic statement? 10) Which of the following is a positive economic statement? c. Social justice will be served by increasing the minimum wage. - The normative statement adds "judgement" or "opinion. D) A decrease in tax rates is needed to help the poor. c)The productivity of hospitality workers increased by 1% in 2016. Accounting profit is always positive. That company with a 50% profit rate made too much profit at the expense of consumers. a. Another testable assertion is a statement of fact, such as “It’s raining,” or “Microsoft is the largest producer of computer operating systems in the world.” Like hypotheses, such assertions can be shown to be correct or incorrect. c. Higher rates of investment lead to higher rates of economic growth. b. These fall into two categories. Normative statements are opinions. analysing economic behaviour without making a judgement about the outcome, whether it is good or bad. b. • The validity of a positive statement is verifiable or testable in principle, no matter how difficult it might be. Question: Which of the following is a positive macroeconomic statement: a. Which of the following represents a positive statement? a. D) U.S. firms should not be allowed to outsource production of goods and services. (D) When deciding how to allocate time, the concept of opportunity cost is meaningless. A) Government control of rent is a fair way to help poor people afford housing. Selected Answer: If the price of iPhones falls, a larger quantity of iPhones will be purchased. The minimum wage should be increased. They are subjective statements. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. For example, globalization inflicts economic harm to a country is an opinion. Sign up to view the full answer b) The price of an iPad will fall over the next year. d. Income inequalities should be reduced. c. Social justice will be served by increasing the minimum wage. (d) Teachers should be allowed to take early retirement. United Kingdom has changed over the last the Which of the following is an example of a positive economic statement? c. India should not be a mixed economy. c. Congress ought to pass law X. d. The president should veto law X. Economists tend to stay away from normative statements. A positive statement is used to explain different economic phenomena. It is a positive economics statement. The poor should pay lower taxes and the rich should pay higher taxes. Normative economics (as opposed to positive economics) is a part of economics whose objective is fairness or what the outcome of the economy or goals of public policy ought to be.. Economists commonly prefer to distinguish normative economics ("what ought to be" in economic matters) from positive economics ("what is"). Positive Statement. 23. b. Thus, it is a positive statement. 3) Which of the following statements about positive economic analysis is true ? C) We should raise the standard of living for the elderly. It would help millions of people by increasing their disposable incomes.” – A Positive Economic Statement: may include these words: B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. Economics Q&A Library Which one of the following is a positive economic statement? d. If you drop a ball from the top of a building, it will fall to the ground. Which of the following is a statement of positive economics? c. Economic profit is greater than or equal to accounting profit. B) If the price of gasoline rises, a smaller quantity of it will be bought. However, 4 talks about a microeconomic situation (the impact of one firm's advertising on another firm's sales) and 2 talks about macroeconomics (money supply, unemployment). e. Which one of the following is a positive economic statement? For example, it can describe how government can impact inflation by printing more money, and it can support that statement … Which of the following is a positive economic statement? Which of the following statements is true? The federal minimum wage should be raised to $6.50 per hour. a. a. a. B) Government control of rent keeps landlords from charging too much rent. c. The productivity of hospitality workers increased by 1% in 2016. d. The gross profit of … b. b. Which of the following statements is a positive microeconomic statement? An increase in the minimum wage will reduce employment. Positive statements (and positive reasoning more generally) are objective. c. Tariffs on imported wine will lead to higher prices for domestic wine. 1. The government should reduce the tax burden to help small business. d. A decrease in the capital gains tax rate will increase investment. 93) Which of the following statements is false about positive economic analysis? Positive statements • Positive statements deal with assumptions about the state of the world and some conclusions. a. India should take steps to control rising unemployment. Since they are opinions, they cannot be proven or disproven. d. Economics is more interesting to … Positive economic theory does not provide advice or instruction. It states what "OUGHT to be". a. The central bank should increase the nation's money supply h the nation's unemployment rate down in the short run r Company's new advertising campaign ended up hurting General Motors' sales d. b)The government should reduce the tax burden to help small business. a. Thoughtful people oppose an increase in the minimum wage. D) Government control of rent is an injustice. The government should reduce the tax burden to help small business. A tax increase will increase unemployment. d) The government should lower taxes to increase economic growth. Two kinds of assertions in economics can be subjected to testing. The statement about hydraulic fracturing talks about how fracking increases the global supply of crude oil, rather than what it should do. A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. Which of the following economic statements are positive and which are normative? Which of the following is a positive macroeconomic statement: a. This is called positive reasoning, and the conclusions are called positive statements. The price of steel declined by 3% last year. c. Soap operas should be taken off television. Example 1: The weight of the earth is 6 septillion (6 × 10 24) metric tons. b. a. b. Which of the following is a positive economic statement? An increase in the minimum wage will reduce employment for teenagers. Economic profit is always positive. Looking at your question, only statement c) – A Normative Economic Statement may include the following words: “The government should reduce income tax by 50%. A) A higher income tax rate will reduce the amount of time that people spend working. (c) All workers should be guaranteed minimum employment rights. 93) _____ A) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. of an economic theory. Positive economic statement is B) One in every five children in the United States is living in poverty. The law of demand– “If other factors remain constant, if price rises, demand declines; and if price decreases, demand inclines.” This is the law of demand. a) Interest rates will rise as the economy expands. (B) … Numbers 1 and 3 are normative statements because they describe opinions about what should happen, and 2 and 4 are positive because they describe what actually happened. ; Positive economic statements are based on... See full answer below. The government ought to balance its budget and eliminate the deficit. Positive Statements. Positive statements refer to what is and contain no indication of approval or disapproval. b. The United States spends too much on national defense. C) Government control of rent decreases the number of new apartments constructed. Positive statements talk about what is while normative statements talk about what ought or should be. (a) People should use public transportation more often. Law X will reduce national income. c) Apple should lower the price of its iPad to discourage competitors from entering the market. (A) An increase in the price of butter causes consumers to buy less butter. 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