Question 1

Which of the following best describes a positive statement?

Accepted Answer

A statement that makes a claim about how the world is and can be tested.

Question 2

Identify the normative statement among the following:

Accepted Answer

The government ought to ban offshore drilling.

Question 3

Which keyword is most likely to indicate a normative statement?

Accepted Answer

ought

Question 4

Consider the statement: 'Minimum wage laws are a bad idea because they cause unemployment.' Which part of this statement is positive and which is normative?

Accepted Answer

The first part is normative; the second part is positive.

Question 5

Which of the following statements is a positive statement?

Accepted Answer

Raising taxes will decrease consumer spending.

Question 6

A student claims: 'The government ought to increase the minimum wage.' This is an example of:

Accepted Answer

A normative statement because it expresses a value judgment.

Question 7

Which of the following is NOT a characteristic of a positive statement?

Accepted Answer

It expresses a value judgment.

Question 8

Which of the following statements is most likely to be debated based on values rather than facts?

Accepted Answer

The government should ban smoking in public places.

Question 9

Suppose a politician says, 'We ought to reduce pollution to improve public health.' This statement is:

Accepted Answer

A normative statement because it suggests what should be done.

Question 10

Which of the following best illustrates the difference between positive and normative statements?

Accepted Answer

'Increasing the minimum wage will increase unemployment' is positive; 'The government should increase the minimum wage' is normative.

Question 11

Which of the following statements contains both a positive and a normative component?

Accepted Answer

'The government ought to lower taxes because lower taxes increase economic growth.'

Question 12

A news article states: 'Raising the minimum wage will lead to higher unemployment among teenagers.' This is an example of:

Accepted Answer

A positive statement because it makes a testable claim.

Question 13

Which of the following statements is most likely to be tested using data and evidence?

Accepted Answer

'Universal healthcare improves life expectancy.'

Question 14

Which of the following is a normative statement about education policy?

Accepted Answer

'The government ought to increase education spending.'

Question 15

A researcher claims: 'If the government increases taxes on cigarettes, smoking rates will decrease.' This is:

Accepted Answer

A positive statement because it predicts an outcome that can be tested.

Positive and Normative Statements in Economics

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