“The government should reduce income taxes” – this statement is an example of positive economics.Question 28Select one:TrueFalse

Analyzing the Statement

1. Understanding Positive Economics: Positive economics deals with statements that can be tested and validated, focusing on objective data and factual analysis rather than opinions or recommendations.

2. Evaluating the Statement: The statement "The government should reduce income taxes" implies a prescription or recommendation, which is normative economics. Normative economics concerns what ought to be and includes value judgments.

Conclusion

Since the statement advocates for a specific action (reducing income taxes), it reflects a normative viewpoint rather than a positive one. Thus, it is not an example of positive economics.

Final Answer

False. The statement is an example of normative economics, not positive economics.