Discuss whether each statement is an example of positive economics or normative

Question

Discuss whether each statement is an example of positive economics or normative economics or if it contains elements of both:

A) an increase in the personal income tax will slow the growth rate of the economy.

B) the goal of any country's economic policy should be to increase the well being of its poorest , most vulnerable citizens.

C) excess regulation of small business is stifling the economy. Small business has been responsible for most of the growth in employment over the last 10 years, but regulations are putting a severe damper on the ability of small businesses to survive and prosper.

D) the 1990s were a disastrous decade for the U.S. economy. Income inequality increased to its highest level since before World War 2.

Explanation / Answer

a)posituve

b)normative

c)normative

d)both

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