Which of the following statements is an example of a positive economic statement that can be tested or verified with data?

Introduction / Context:
Economics distinguishes between positive statements and normative statements. Positive statements describe facts about the world and can be tested using data. Normative statements express value judgments about what ought to be done and cannot be proved true or false by simple observation. This question asks the learner to select the statement that is clearly positive in nature.

Given Data / Assumptions:

• Positive statements are descriptive and can be verified or falsified with empirical evidence.
• Normative statements involve opinions, preferences, or value judgments using words such as should, ought, or too much.
• The options include several statements about unemployment, taxes, and policy actions.
• The task is to identify which statement can be checked directly against data without involving personal opinion.

Concept / Approach:
The statement "The unemployment rate is 4.8 percent" is a factual claim about a measurable economic variable. It can be tested by looking up official labour statistics. If the data show that the unemployment rate is indeed 4.8 percent, the statement is true; if not, it is false. All the other statements include value judgments and terms like should, ought, or too high, which depend on personal or social preferences and cannot be conclusively verified by data alone. Therefore, the correct answer is the statement that reports a specific unemployment rate.

Step-by-Step Solution:
Step 1: Scan all options for words that suggest opinions or prescriptions such as should, ought, or too high.Step 2: Notice that options a, b, c, and e all contain such normative language, implying value judgments about what policies are desirable.Step 3: Observe that option d simply states a measured fact: the unemployment rate is 4.8 percent.Step 4: Recognise that this factual claim can be checked against official statistics, making it a positive statement.Step 5: Select "The unemployment rate is 4.8 percent" as the correct answer.

Verification / Alternative check:
Economics textbooks define positive economics as the branch that deals with what is, while normative economics deals with what ought to be. Examples of positive statements include specific claims about inflation or unemployment rates, while normative examples include recommendations for policy. Applying this definition, the statement about the unemployment rate being 4.8 percent fits the positive category. The other statements ask for policy actions or evaluate conditions as too high or undesired, which are normative.

Why Other Options Are Wrong:
The statement that the government should extend unemployment benefits is normative because it expresses a view about what policy ought to be adopted. The claim that the unemployment rate is too high is also normative because the word too implies a value judgment about acceptable levels. The statement about taxes should not be increased is again a recommendation rather than a testable fact. The suggestion that the central bank ought to reduce interest rates also reflects a policy preference. None of these statements can be verified purely by looking at data, so they are not positive statements.

Common Pitfalls:
Students may sometimes confuse statements that contain economic reasoning with positive statements, even if they use should or ought. It is important to focus on whether the statement describes an observable fact or prescribes a policy. Any statement that recommends a course of action or evaluates a situation as too high or too low is normative. Recognising this distinction helps in correctly identifying positive statements in such questions.

Final Answer:
"The unemployment rate is 4.8 percent." is a positive economic statement because it can be tested and verified with data.