Question

Which of the following is a positive economic statement?

Answer 1

Answer:

C. If taxes are over 50 percent of national income, job creation falls.

Explanation:

Option C is correct because the positive economic statements are those statements that can be tested and rejected but the normative economic statements can not be tested, these statements are nonvalue judgments. Thus, the statement is given in the question that the tax rate of 50% on the national income will decrease the job creation can be tested or it can be rejected. Thus, option C is right.