Introduction to Economics 1 Deneme Sınavı Sorusu #712380
Which of the following is a positive statement?
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When the government sets unemployment insurance payments too generously, for instance, it reduces the rewards for hard work, and may demotivate job seekers as a result. |
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Government policies designed to improve equity may reduce efficiency. |
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When large quantities of the national currency are put in circulation, the value (or purchasing power) of the money falls. |
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The government that faces a tradeoff should set its priorities by giving the proper weights to these two goals that sometimes conflict. |
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A household may have to decide whether to change the car or furniture at home. |
Positive statements in economics are statements that intend to describe how things are and how things actually work. A normative statement is a prescriptive statement, like the ones expected to be made by a policy adviser, involving normative judgements and prescriptions about how the world should be. As it can be understood from these definitions the correct answer is “C”.
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