In this quiz and worksheet combo, you'll be tested on normative and positive economic statements. 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. b. c. Higher rates of investment lead to higher rates of economic growth. A) A higher income tax rate will reduce the amount of time that people spend working. - The normative statement adds "judgement" or "opinion. Which of the following economic statements are positive and which are normative? Which of the following statements is true? (b) The government should ban diesel engines in … Two kinds of assertions in economics can be subjected to testing. b. Positive statements (and positive reasoning more generally) are objective. Which of the following is a statement of positive economics? A) Government control of rent is a fair way to help poor people afford housing. B) If the price of gasoline rises, a smaller quantity of it will be bought. D) A decrease in tax rates is needed to help the poor. A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. 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). d. Economics is more interesting to … Positive Economics deals with What Is i.e. (a) People should use public transportation more often. (a) The extent of wealth inequality in 30 years (b) The level of unemployment is too high. c. Congress ought to pass law X. d. The president should veto law X. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. b)The government should reduce the tax burden to help small business. This is called positive reasoning, and the conclusions are called positive statements. c. The productivity of hospitality workers increased by 1% in 2016. d. The gross profit of … B) Teenage unemployment should be reduced. Also the statement of a theory, and it's effects on the economy is a positive statement. Positive statements refer to what is and contain no indication of approval or disapproval. b. Law X will reduce national income. (d) Teachers should be allowed to take early retirement. Positive statements talk about what is while normative statements talk about what ought or should be. Positive economic theory does not provide advice or instruction. Selected Answer: If the price of iPhones falls, a larger quantity of iPhones will be purchased. – A Normative Economic Statement may include the following words: “The government should reduce income tax by 50%. • The validity of a positive statement is verifiable or testable in principle, no matter how difficult it might be. For example, it can describe how government can impact inflation by printing more money, and it can support that statement … d. If you drop a ball from the top of a building, it will fall to the ground. Positive economic statement - it is referred to as the statement that can be tested, validated on the basis of available evidence. The positive economic statement is totally based on fact while the normative statement is based on the value of judgment. Which one of the following is a positive economic statement? c. Soap operas should be taken off television. a. Thoughtful people oppose an increase in the minimum wage. 23. C) Government control of rent decreases the number of new apartments constructed. Which of the following is a positive economic statement? - A positive statement is a statement describing "what IS". a. India should take steps to control rising unemployment. Which of the following is a positive macroeconomic statement: a)The price of steel declined by 3% last year. It doesn't only have to be a statement about the past though. D) Government control of rent is an injustice. One is the hypothesis. Which one of the following is a positive economic statement? a) Interest rates will rise as the economy expands. They are subjective statements. (A) An increase in the price of butter causes consumers to buy less butter. (c) All workers should be guaranteed minimum employment rights. A positive statement is used to explain different economic phenomena. The poor should pay lower taxes and the rich should pay higher taxes. d. A decrease in the capital gains tax rate will increase investment. Economics Q&A Library Which one of the following is a positive economic statement? e. 93) Which of the following statements is false about positive economic analysis? Law X is a good piece of legislation. Which of the following is a positive economic statement? The U.S. public should devote more resources to education. (B) … (D) When deciding how to allocate time, the concept of opportunity cost is meaningless. These fall into two categories. 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. The price of steel declined by 3% last year. Thus, it is a positive statement. c. Economic profit is greater than or equal to accounting profit. A statement of fact or a hypothesis is a positive statement. The United States spends too much on national defense. 3) Which of the following statements about positive economic analysis is true ? b) The price of an iPad will fall over the next year. Which of the following is an example of a positive economic statement? … a. Economic profit is always positive. Looking at your question, only statement c) B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. c)The productivity of hospitality workers increased by 1% in 2016. The government ought to balance its budget and eliminate the deficit. It states what "OUGHT to be". The government should reduce funding for social assistance programs. Question: Which of the following is a positive macroeconomic statement: a. 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 the tax burden to help small business. 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. of an economic theory. Positive statements • Positive statements deal with assumptions about the state of the world and some conclusions. Which of the following statements is a positive microeconomic statement? The minimum wage should be increased. Namer 7. d) The government should lower taxes to increase economic growth. Which one of the following is a positive economic statement? Accounting profit is always positive. C) We should raise the standard of living for the elderly. Which of the following is a positive macroeconomic statement: a. C) The government should close income tax loopholes. 1. 17. b. c) Apple should lower the price of its iPad to discourage competitors from entering the market. b. d. Income inequalities should be reduced. The federal minimum wage should be raised to $6.50 per hour. Which of the following represents a positive statement? b. Sign up to view the full answer Since they are opinions, they cannot be proven or disproven. A positive statement, on the other hand, is a factual statement. 10) Which of the following is a positive economic statement? An increase in the minimum wage will reduce employment for teenagers. Positive economic statement is B) One in every five children in the United States is living in poverty. Positive Statement. It is a positive economics statement. It would help millions of people by increasing their disposable incomes.” – A Positive Economic Statement: may include these words: When values or opinions come into the analysis, then it is in the realm of normative economics. B) Government control of rent keeps landlords from charging too much rent. b. Which of the following is a positive macroeconomic statement? Example 1: The weight of the earth is 6 septillion (6 × 10 24) metric tons. A tax increase will increase unemployment. 93) _____ A) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. b. a. c. Tariffs on imported wine will lead to higher prices for domestic wine. Economists tend to stay away from normative statements. For example, globalization inflicts economic harm to a country is an opinion. Economics Principles of Macroeconomics (MindTap Course List) Which of the following is a positive, rather than a normative, statement? Positive Statements. a. Which of the following is an example of a positive economic statement? c. Social justice will be served by increasing the minimum wage. Question 9 5 out of 5 points Which of the following is a positive economic statement? That company with a 50% profit rate made too much profit at the expense of consumers. An increase in the minimum wage will reduce employment. 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"). b. United Kingdom has changed over the last the 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. The statement about hydraulic fracturing talks about how fracking increases the global supply of crude oil, rather than what it should do. A) Everyone should live at the same standard of living. a. As such, they can be tested. Which of the following is a positive economic statement? ; Positive economic statements are based on... See full answer below. b. c. Social justice will be served by increasing the minimum wage. Normative statements are opinions. a. D) U.S. firms should not be allowed to outsource production of goods and services. a. The price of steel declined by 3% last year. 1. There are social and economic inequalities in our country. d. Thoughtful people oppose an increase in the minimum wage. c. India should not be a mixed economy. 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