Positive Statements Are Not

question 17

Multiple Choice

Positive statements are not

• A)descriptive.
• B)prescriptive.
• C)claims about how the world is.
• D)made by economists speaking as scientists.

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Definitions:

Regressive Tax

A tax system where the tax rate decreases as the amount subject to taxation increases, placing a heavier burden on lower-income earners.

Market Activity

The collective buying and selling of goods and services, including financial transactions, in an economy.

Government Activity

Actions taken by a government to influence its country's economy, including policies and programs.

Voluntary Exchange

An economic transaction where both parties agree to trade goods or services by mutual consent without coercion.