How Do Economists View Positive Statements

question 47

Multiple Choice

How do economists view positive statements?

• A) affirmative, justifying existing economic policy
• B) optimistic, putting the best possible interpretation on things
• C) descriptive, making a claim about how the world is
• D) prescriptive, making a claim about how the world ought to be

---

Definitions:

Health Care Reform

A broad term for policies and measures aimed at improving healthcare system performance, increasing access to healthcare, and ensuring better health outcomes.

Initial Endowment

The initial allocation of income, wealth, or resources that an individual or firm possesses before entering into any economic transactions.

Taxes Rise

Taxes rise refers to the increase in the required contributions by individuals or corporations to government revenues.

Laspeyres Price Index

a measure of the change in the cost of purchasing a fixed basket of goods and services, relative to the cost of the same basket in a base period.