Question

Which statement is a positive economic statement? A. Gov ernment should be subject to the same rules as all other institutions B. Government has grown too large and should be reduced. C. There has been an increase in the rate of inflation. D. Women should be paid as much as men are for the same work

Answer 1

Answer:

C. There has been an increase in the rate of inflation

Explanation:

We should make the difference between positive statements and normative statements.

positive economics tries to understand behavior without judgments

while normaives, are the evalation on the positive economics. It prescribes a course of action like "higher education should be free"

In this case, only statment C is a positive statement as it does not inccurs in any sugestions. It only describes a situation without judgments on the oucome.