Questions: Positive statements are
a. claims about how the world is.
b. prescriptive.
c. made by economists speaking as policy advisers.
d. claims about how the world should be.
Transcript text: Positive statements are
a. claims about how the world is.
b. prescriptive.
c. made by economists speaking as policy advisers.
d. claims about how the world should be.
Solution
Answer
The answer is a. claims about how the world is.
Explanation
Option 1: claims about how the world is.
Positive statements are factual assertions that describe the world as it is. They can be tested and validated through observation and empirical evidence. For example, "The unemployment rate is 5%" is a positive statement because it can be measured and verified.
Option 2: prescriptive.
Prescriptive statements, also known as normative statements, suggest how things ought to be. They are based on value judgments and opinions rather than empirical evidence. For example, "The government should reduce unemployment" is a prescriptive statement.
Option 3: made by economists speaking as policy advisers.
While economists can make positive statements when acting as policy advisers, this option is not specific enough to define what positive statements are. Positive statements can be made by anyone, not just economists.
Option 4: claims about how the world should be.
This describes normative statements, which are based on opinions and value judgments about what ought to be. Positive statements, in contrast, are objective and fact-based.