Which one of the following is a positive economic statement?
a.
Areas that have enacted public school vouchers have seen an improvement in the performance level of students.
b.
Something must be done to halt the rapid rise in health care costs.
c.
People should be more concerned with the safety of air travel.
d.
The sales tax on food should be repealed because it unfairly burdens those with low incomes.
The Correct Answer and Explanation is :
The correct answer is:
a. Areas that have enacted public school vouchers have seen an improvement in the performance level of students.
Explanation:
A positive economic statement is one that can be tested, verified, or proven true or false based on empirical evidence. These statements describe “what is” and can be validated using data or observations.
Option a: “Areas that have enacted public school vouchers have seen an improvement in the performance level of students.”
- This is a positive economic statement because it makes a claim that can be tested with data. Researchers can study areas with public school vouchers and analyze student performance to see if the claim holds true or not. The statement is objective and focuses on factual analysis.
Why the other options are not positive statements:
Option b: “Something must be done to halt the rapid rise in health care costs.”
- This is a normative economic statement. It expresses a value judgment or opinion about what should be done, rather than stating an observable fact. Normative statements reflect subjective views or beliefs about how things ought to be.
Option c: “People should be more concerned with the safety of air travel.”
- This is also a normative statement. It suggests what people should do, reflecting a value judgment about what is important, but it is not testable or verifiable.
Option d: “The sales tax on food should be repealed because it unfairly burdens those with low incomes.”
- This is another normative statement. It involves an opinion on what should be done (repealing the sales tax), accompanied by a value judgment about fairness, which is not a testable fact.
In contrast to normative statements, positive economic statements can be confirmed or refuted based on evidence, and they do not reflect personal opinions or values.