Which of the following is an example of a positive economic statement?

• A. Society ought to provide free healthcare for all citizens.
• B. An increase in the minimum wage will lead to higher unemployment among teenagers.
• C. The government should increase the minimum wage to improve living standards.
• D. It is unfair that some people earn less than others.

Answer: (B)

Verified step by step guidance

1. Understand the difference between positive and normative economic statements. Positive statements are objective and can be tested or validated with data, while normative statements are subjective and based on opinions or value judgments.
2. Review each statement to determine if it is testable or expresses an opinion. For example, statements using words like 'ought,' 'should,' or expressing fairness are typically normative.
3. Identify the statement that makes a factual claim about cause and effect, which can be tested or verified through evidence or data.
4. Recognize that the statement 'An increase in the minimum wage will lead to higher unemployment among teenagers' is a positive economic statement because it predicts an outcome that can be empirically tested.
5. Conclude that the other statements are normative because they express opinions about what ought to be done or what is fair, rather than stating testable facts.