Which of the following would best be described as a positive statement?
Choose 1 answer:
(A) Free markets are inherently unfair institutions
(B) Countries normally experience higher unemployment during recessions
(c) Business profits should be redistributed through taxes to benefit more of society
(D) Increasing taxes is positively wrong
(E) The focus of government spending should be on improving wellbeing

Question

Which of the following would best be described as a positive statement?
Choose 1 answer:
(A) Free markets are inherently unfair institutions
(B) Countries normally experience higher unemployment during recessions
(c) Business profits should be redistributed through taxes to benefit more of society
(D) Increasing taxes is positively wrong
(E) The focus of government spending should be on improving wellbeing

Accepted Answer

***B*** ∻Key Concept∻ ⚹Positive vs. Normative Statements⚹ ∻Explanation∻ ⚹Positive statements are objective and based on factual claims about how the world is, which can be tested and validated. "Countries normally experience higher unemployment during recessions" is a positive statement because it describes an economic outcome that can be tested and measured. Normative statements are subjective and based on opinions or beliefs about how the world ought to be, such as statements A, C, D, and E.⚹◊What impact does increasing government spending have on a country's overall wellbeing, according to macroeconomic principles?⍭ Generate me a similar question◊

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