Positive vs. Normative Statements in Economics

Steps:

• Recall that positive statements describe what is or will be, based on facts and testable predictions.
• Identify normative statements as those expressing opinions on what should be, involving value judgments.
• Evaluate each option: A compares importance (normative); B sets a priority (normative); C uses "should" to prescribe action (normative); D predicts a factual outcome (positive).
• Confirm D as the only verifiable statement about government action.

Why D is correct:

• Positive statements are objective predictions about reality, verifiable by evidence, as per economic methodology distinguishing facts from opinions.

Why the others are wrong:

• A: Value judgment on relative importance, not testable.
• B: Opinion on policy priority, prescriptive.
• C: Recommendation for action, normative "ought."

Final answer: D