18. Normative and positive statementsThe following table contains statements that provide some analysis of policies that address taxes.Categorize each of these statements as either positive or normative.StatementPositiveNormativeTaxes are too high. In some circumstances, if taxes are lowered, government revenues actually increase. It is immoral for a government to redistribute money from one person to another. When the government increases taxes, rates of tax evasion increase.

Positive and normative analysis are two branches of economics. Positive analysis focuses on “what…

Answered: Normative and positive statements

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18. Normative and positive statements

The following table contains statements that provide some analysis of policies that address taxes.

Categorize each of these statements as either positive or normative.

Statement	Positive	Normative
Taxes are too high.
In some circumstances, if taxes are lowered, government revenues actually increase.
It is immoral for a government to redistribute money from one person to another.
When the government increases taxes, rates of tax evasion increase.

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