A Level Economics (9708)•9708/13/M/J/19

Explanation
Statement reflects positive microeconomics
Steps:
- Analyze the statement: It proposes taxation's effect on congestion, a factual cause-effect relationship (positive economics).
- Identify scope: Focuses on city centre traffic, a specific local market issue (microeconomics).
- Distinguish from macro: Involves one city's transportation, not national aggregates like GDP or inflation.
- Conclude type: Positive analysis of micro policy tool (taxation for congestion).
Why B is correct:
- Positive economics predicts outcomes without judgment; taxation reducing congestion is an objective, testable micro policy effect (per economic definitions of positive vs. normative).
Why the others are wrong:
- A: Not normative (lacks "ought" beyond effect); not macro (local, not economy-wide).
- C: Positive yes, but macro no (city-specific, not aggregate).
- D: Duplicate of B, but lacks distinction; incorrect as listed.
Final answer: B
Topic: Economic methodology
Practice more A Level Economics (9708) questions on mMCQ.me