1.1 Economic methodology and the economic problem

Which one of the following is a positive economic statement?

The government should increase the top rate of income tax to 50% in order to reduce the level of income inequality.

Imposing a congestion charge in urban centres is an unfair penalty on workers who have no access to public transport.

A reduction in the rate of Corporation Tax will lead to an increase in the inflow of foreign direct investment.

High inflation is a more damaging economic problem for society than high unemployment.

1.1 Economic methodology and the economic problem Questions

Which one of the following is a positive economic statement?

The government should increase the top rate of income tax to 50% in order to reduce the level of income inequality.

Imposing a congestion charge in urban centres is an unfair penalty on workers who have no access to public transport.

A reduction in the rate of Corporation Tax will lead to an increase in the inflow of foreign direct investment.

High inflation is a more damaging economic problem for society than high unemployment.