Question

Which of the following is a statement of positive economics?

Answer 1

Answer:

a. If the overall unemployment rate is 6 percent, teenage unemployment rates will exceed 12 percent.

Explanation:

Positive economics refers to the description of facts and information related to the economic situation of a country or region. It simply means explaining the facts and reality that is proven by theoretical work as well. It highlights the cause and effect relationships between different economic phenomenon. Here, the statement that if the overall unemployment rate is 6 percent, teenage unemployment rates will exceed 12 percent fulfills this criteria as it presents a simple and well-known fact that teenage unemployment rates are usually higher than the overall unemployment rate and can be double. This is because of a lack of skill set and experience at the youth level as compared to older age groups.