Which of the following is a positive economic statement? A. Everyone should live at the same standard of living. B. If the price of gasoline rises, a smaller quantity of it will be bought. C. The government should close income tax loopholes. D. U. S. firms should not be allowed to outsource production of goods and services.

Question

Business

Lance Johnston

2 September, 22:39

Which of the following is a positive economic statement? A. Everyone should live at the same standard of living. B. If the price of gasoline rises, a smaller quantity of it will be bought. C. The government should close income tax loopholes. D. U. S. firms should not be allowed to outsource production of goods and services.

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Answers (1)

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Brice Mcdonald · Answer 1

B. If the price of gasoline rises, a smaller quantity of it will be bought.

Explanation:

A positive economic statement is the one which is based on the facts and it can be verified based on different facts established, or studies.

Whereas, a normative economic statement is the one which focuses on providing a suggestion, or an opinion of an economists for the economy, and cannot be verified.

Since statement B clearly states the fact related to the pricing policy of gasoline, and the effect which can be verified, thus, it is positive economic statement.