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

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Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Positive Statement: A positive statement is an objective statement that can be tested, amended, or rejected by referring to the available evidence. ‖ ‖ b ⋮ Analysis of Options: - (A) Free markets are inherently unfair institutions: This is a normative statement as it reflects a value judgment. - (B) Countries normally experience higher unemployment during recessions: This is a positive statement as it can be tested and verified with data. - (C) Business profits should be redistributed through taxes to benefit more of society: This is a normative statement as it reflects a value judgment. - (D) Increasing taxes is positively wrong: This is a normative statement as it reflects a value judgment. - (E) The focus of government spending should be on improving wellbeing: This is a normative statement as it reflects a value judgment. ‖ ∻Answer∻ ⚹ (B) Countries normally experience higher unemployment during recessions ⚹ ∻Key Concept∻ ⚹ Positive Statement ⚹ ∻Explanation∻ ⚹ A positive statement is an objective statement that can be tested and validated with empirical evidence. Option (B) is a positive statement because it describes an observable economic phenomenon that can be measured and verified. ⚹◊How can government intervention positively impact the wellbeing of society according to the principles of macroeconomics?⍭ Generate me a similar question◊

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