Question

Which of the following statement is a positive statement?

(A) The unemployment rate is too high and should be reduced through government actions.
(B) The rate of inflation was about 2 percent last year, an all time low for the past decade.
(C) The government should take action to break up the monopoly power of Microsoft.
(D) Interest rates should be lower in the United States so that people can afford to build a home.

Answer 1

Option B. The following statement is a positive statement:

The rate of inflation was about 2 percent last year, an all time low for the past decade.

Step-by-step explanation:

In economics there are two types of statements: positive and negative. A positive statement is an objective statement that can be tested, amended, or rejected when referring to already available evidence and data. On the other hand, a negative statement is a subjective one that is based on an opinion rather than a fact or data. "The rate of inflation was about 2 percent last year, an all-time low for the past decade" is an example of a positive statement, as it is stating something not only objective but also available to be checked with evidence and data.