Which of the following is an example of a positive statement in economics?

• A. It is unfair that some people earn less than others.
• 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. Society ought to provide free healthcare for all citizens.

Answer: (B)

Verified step by step guidance

1. Understand the difference between positive and normative statements in economics. Positive statements describe the world as it is and can be tested or validated with evidence, while normative statements express opinions or what ought to be and cannot be tested.
2. Review each statement and determine if it is testable or expresses a value judgment. For example, "It is unfair that some people earn less than others" is a normative statement because it expresses an opinion about fairness.
3. Identify the statement that makes a testable claim about economic outcomes. The statement "An increase in the minimum wage will lead to higher unemployment among teenagers" predicts a cause-and-effect relationship that can be empirically tested.
4. Confirm that the other statements, such as "The government should increase the minimum wage to improve living standards" and "Society ought to provide free healthcare for all citizens," are normative because they suggest what should happen based on values.
5. Conclude that the positive statement is the one that can be supported or refuted by data and analysis, which in this case is the statement about the minimum wage and unemployment.