Questions: 1 Multiple Choice 1 point Which of the following is a positive economic statement? Raising taxes provides additional revenue that should be used to finance health care. Too much government spending is the biggest problem facing the U.S. economy. Unemployment is the most serious problem facing the U.S. economy. If taxes are over 50 percent of national income, the unemployment rate will rise.

The answer is the last one: If taxes are over 50 percent of national income, the unemployment rate will rise.

Explanation:

1. Raising taxes provides additional revenue that should be used to finance health care.

   • This is a normative economic statement because it includes a value judgment about what should be done with the additional revenue.

2. Too much government spending is the biggest problem facing the U.S. economy.

   • This is also a normative economic statement because it reflects an opinion about what constitutes the biggest problem.

3. Unemployment is the most serious problem facing the U.S. economy.

   • This is a normative economic statement as it expresses a subjective view about the seriousness of unemployment compared to other issues.

4. If taxes are over 50 percent of national income, the unemployment rate will rise.

   • This is a positive economic statement because it is a hypothesis that can be tested and validated or refuted with empirical data. It makes a factual claim about the relationship between tax rates and unemployment.

In summary, positive economic statements are objective and can be tested, while normative statements are subjective and based on opinions or values.