Practicing Success
Which of the following is a positive economics statement? |
People should take COVID-19 vaccines Every child should pursue one sport in school The government provides subsidies. It increases their financial burden Government should provide basic healthcare to the public |
The government provides subsidies. It increases their financial burden |
In positive economic analysis, we study how the different mechanisms function, and in normative economics, we try to understand whether these mechanisms are desirable or not. Normative statement pronounces value judgments as these are opinions or suggestions whereas, positive statements are capable of empirical (statistical) verification as these are based on the facts. Thus, from the above statements it is clear that "The government provides subsidies. It increases their financial burden" is a Positive statement as it is a fact that subsidies put a huge burden on the government finances. Whereas, all the other statements are opinions or suggestions. |