Question

Which of the following is a positive economic​ statement? A. Everyone should live at the same standard of living. B. If the price of gasoline​ rises, a smaller quantity of it will be bought. C. The government should close income tax loopholes. D. U.S. firms should not be allowed to outsource production of goods and services.

Answer 1

Answer:

B. If the price of gasoline​ rises, a smaller quantity of it will be bought.

Explanation:

A positive economic statement is the one which is based on the facts and it can be verified based on different facts established, or studies.

Whereas, a normative economic statement is the one which focuses on providing a suggestion, or an opinion of an economists for the economy, and cannot be verified.

Since statement B clearly states the fact related to the pricing policy of gasoline, and the effect which can be verified, thus, it is positive economic statement.