Asked by Delaney Bacher on May 28, 2024
Verified
Better insurance benefits increase the incentive of some individuals to work. This statement is best described as
A) a positive statement.
B) an example of the ceteris paribus assumption.
C) a normative statement.
D) a comparative economics statement.
Positive Statement
An objective statement that can be tested, amended, or rejected by referring to the available evidence.
Insurance Benefits
Insurance benefits are payments made by an insurance company to the insured or a designated beneficiary under the terms of an insurance policy.
Ceteris Paribus Assumption
A Latin term meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant.
- Discriminate between positive and normative economics and comprehend their functions in the realm of economic analysis and policy suggestions.
Verified Answer
OG
Oopeve GosoljitMay 29, 2024
Final Answer :
A
Explanation :
This statement is a positive statement because it describes a relationship between insurance benefits and work incentives without making a judgment about whether this is good or bad. Positive statements are factual and can be tested or validated through observation or data.
Learning Objectives
- Discriminate between positive and normative economics and comprehend their functions in the realm of economic analysis and policy suggestions.