Distinguishing positive from normative economic statements

Steps:

• Define positive statements as objective, testable claims about economic facts or relationships.
• Define normative statements as subjective opinions involving value judgments or policy prescriptions.
• Classify each option: A describes a verifiable market effect; B, C, and D express preferences or ideals.
• Select the option that fits the positive definition without opinion.

Why A is correct:

• It states a factual economic relationship: depreciation of the yuan lowers Chinese export prices in dollar terms, testable via trade data and exchange rate models like purchasing power parity.

Why the others are wrong:

• B: Normative, as it prescribes taxes' role in redistribution without evidence.
• C: Normative, as it judges unemployment reduction as "most important," a policy priority opinion.
• D: Normative, as it advocates renationalization based on desirability, not facts.

Final answer: A