Question

Which of the following is a positive economic statement?

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

b. Creating jobs is the most serious problem facing the U.S. economy.

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

d. If taxes are over 50 percent of national income, job creation falls.

Which one of the following would be classified as employed?

a. a parent who works 50 to 60 hours per week caring for family members

b. an construction worker vacationing in Florida who is on layoff due to bad weather conditions in his home state

c. a 21-year-old full-time college student

d. a 17-year-old high school student who works a newspaper route six hours per week

Answer 1

1) Option D. Positive statements exhibit the state of affairs, what is happening, can happen or will happen in the economy are discussed under positive economics. In contrast, the other statements are normative in nature implying that they discuss what should be done

2)  Option D. This is because the person is older than 16 years and he is working for 6 hours a week. C is a college student and not in labor force while A is not working. B is currently seasonally unemployed.