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Suppose an Economic Study Shows That Increasing the Tax Rate

Question 21

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Suppose an economic study shows that increasing the tax rate on beer will reduce the amount of traffic accidents.Which of the following statements can be valid based on the study because they are positive statements,and which cannot be valid because they are normative statements.
(A)"Increasing the tax rate on beer is a method of reducing traffic accidents."
(B)"If the government wishes to reduce traffic accidents,it ought to raise the beer tax."
(C)"The government should not raise the beer tax on low-income drinkers."

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(A) Positive stateme...

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