A statement of fact or a hypothesis is a positive statement. Which of the following represents a positive statement? (b) The government should ban diesel engines in … C) The government should close income tax loopholes. Which of the following is an example of a positive economic statement? Which of the following is a positive macroeconomic statement? d. A decrease in the capital gains tax rate will increase investment. These fall into two categories. A) A higher income tax rate will reduce the amount of time that people spend working. The minimum wage should be increased. Positive statements talk about what is while normative statements talk about what ought or should be. Positive statements (and positive reasoning more generally) are objective. The U.S. public should devote more resources to education. Namer 7. c. Congress ought to pass law X. d. The president should veto law X. Positive economic statement is B) One in every five children in the United States is living in poverty. 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. One is the hypothesis. 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. They are subjective statements. 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. When values or opinions come into the analysis, then it is in the realm of normative economics. For example, globalization inflicts economic harm to a country is an opinion. That company with a 50% profit rate made too much profit at the expense of consumers. 1. Sign up to view the full answer The government should reduce the tax burden to help small business. Accounting profit is always positive. Positive statements refer to what is and contain no indication of approval or disapproval. Positive economic statement - it is referred to as the statement that can be tested, validated on the basis of available evidence. It states what "OUGHT to be". b. - A positive statement is a statement describing "what IS". 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. of an economic theory. d. Income inequalities should be reduced. Which of the following economic statements are positive and which are normative? D) Government control of rent is an injustice. Positive economic theory does not provide advice or instruction. c. Tariffs on imported wine will lead to higher prices for domestic wine. - The normative statement adds "judgement" or "opinion. A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. Which one of the following is a positive economic statement? A positive statement, on the other hand, is a factual statement. a. … c. Soap operas should be taken off television. 1. (d) Teachers should be allowed to take early retirement. (a) People should use public transportation more often. The price of steel declined by 3% last year. d) The government should lower taxes to increase economic growth. It is a positive economics statement. 10) Which of the following is a positive economic statement? a) Interest rates will rise as the economy expands. a. Positive Statements. 23. The United States spends too much on national defense. b. d. If you drop a ball from the top of a building, it will fall to the ground. Normative statements are opinions. Thus, it is a positive statement. – A Normative Economic Statement may include the following words: “The government should reduce income tax by 50%. Law X will reduce national income. C) We should raise the standard of living for the elderly. c)The productivity of hospitality workers increased by 1% in 2016. c. The productivity of hospitality workers increased by 1% in 2016. d. The gross profit of … An increase in the minimum wage will reduce employment. Which of the following is a statement of positive economics? The federal minimum wage should be raised to $6.50 per hour. b)The government should reduce the tax burden to help small business. a. A positive statement is used to explain different economic phenomena. The government should reduce the tax burden to help small business. b. • The validity of a positive statement is verifiable or testable in principle, no matter how difficult it might be. c) Apple should lower the price of its iPad to discourage competitors from entering the market. Which of the following is a positive macroeconomic statement: a. Question: Which of the following is a positive macroeconomic statement: a. A tax increase will increase unemployment. a. B) Government control of rent keeps landlords from charging too much rent. Which one of the following is a positive economic statement? 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"). As such, they can be tested. 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. Looking at your question, only statement c) Economics Principles of Macroeconomics (MindTap Course List) Which of the following is a positive, rather than a normative, statement? Which of the following is a positive economic statement? b. The poor should pay lower taxes and the rich should pay higher taxes. The government ought to balance its budget and eliminate the deficit. Since they are opinions, they cannot be proven or disproven. Economic profit is always positive. 93) Which of the following statements is false about positive economic analysis? 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). a. India should take steps to control rising unemployment. Example 1: The weight of the earth is 6 septillion (6 × 10 24) metric tons. C) Government control of rent decreases the number of new apartments constructed. Positive Statement. The positive economic statement is totally based on fact while the normative statement is based on the value of judgment. Question 9 5 out of 5 points Which of the following is a positive economic statement? c. India should not be a mixed economy. b. D) A decrease in tax rates is needed to help the poor. Positive Economics deals with What Is i.e. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. Which of the following is a positive macroeconomic statement: a)The price of steel declined by 3% last year. a. c. Higher rates of investment lead to higher rates of economic growth. b. (A) An increase in the price of butter causes consumers to buy less butter. b. 3) Which of the following statements about positive economic analysis is true ? Which of the following statements is a positive microeconomic statement? Which of the following statements is true? Two kinds of assertions in economics can be subjected to testing. a. Selected Answer: If the price of iPhones falls, a larger quantity of iPhones will be purchased. ; Positive economic statements are based on... See full answer below. B) If the price of gasoline rises, a smaller quantity of it will be bought. d. Economics is more interesting to … Which of the following is an example of a positive economic statement? b. Also the statement of a theory, and it's effects on the economy is a positive statement. (a) The extent of wealth inequality in 30 years (b) The level of unemployment is too high. c. Social justice will be served by increasing the minimum wage. Law X is a good piece of legislation. This is called positive reasoning, and the conclusions are called positive statements. A) Everyone should live at the same standard of living. (c) All workers should be guaranteed minimum employment rights. In this quiz and worksheet combo, you'll be tested on normative and positive economic statements. a. analysing economic behaviour without making a judgement about the outcome, whether it is good or bad. The price of steel declined by 3% last year. Which of the following is a positive economic statement? An increase in the minimum wage will reduce employment for teenagers. 93) _____ A) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. 17. It would help millions of people by increasing their disposable incomes.” – A Positive Economic Statement: may include these words: Which of the following is a positive economic statement? c. Economic profit is greater than or equal to accounting profit. (D) When deciding how to allocate time, the concept of opportunity cost is meaningless. For example, it can describe how government can impact inflation by printing more money, and it can support that statement … c. Social justice will be served by increasing the minimum wage. There are social and economic inequalities in our country. 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. Economics Q&A Library Which one of the following is a positive economic statement? Economists tend to stay away from normative statements. (B) … B) Teenage unemployment should be reduced. b. b) The price of an iPad will fall over the next year. Positive statements • Positive statements deal with assumptions about the state of the world and some conclusions. A) Government control of rent is a fair way to help poor people afford housing. Which one of the following is a positive economic statement? d. Thoughtful people oppose an increase in the minimum wage. The statement about hydraulic fracturing talks about how fracking increases the global supply of crude oil, rather than what it should do. 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