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3. The United States should cut corporate tax rates by another five percentage points (from 21% to 16% in order to increase incentives for firms to create jobs in the United States. Is this a positive or a normative economic statement? Explain.
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Positive economics statement can be defined as a stream of economics which is based on the description, quantification and explanation of economic developments, expectations and associated phenomena. It is based on objective data analysis, relevant facts and associated figures. It tries to establish any cause-and-effect relationships.

On the other hand normative economics is based on the ideological, opinion-oriented, value judgments and "what should be" statements aimed towards economic development, investment projects and scenarios. Its main objective is to summarize people's desirability to various economic developments, situations and programs by asking or saying that what should happen or what ought to be.

As it can be seen in the statement that the United state should cut corporation tax rates by another five percentage points (from 21% to 16%) in order to increase incentives for firms to create jobs in the United States.This is a positive economic statement because the opinion are made based on the quantification figures.

The given figure are if US government cuts corporation tax rate by 5% points from 21% to 16%, then the incentive will increase in the US.

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