Are the following statements true or false? Explain your answers.

a. “When people must pay higher taxes on their wage earnings, it reduces their incentive to work” is a positive statement.

b. “We should lower taxes to encourage more work” is a positive statement.

c. Economics cannot always be used to completely decide what society ought to do.

d. “The system of public education in this country generates greater benefits to society than the cost of running the system” is a normative statement.

e. All disagreements among economists are generated by the media.

12, Evaluate the following statement: “It is easier to build an economic model that accurately reflects events that have already occurred than to build an economic model to forecast future events.” Do you think this is true or not? Why? What does this imply about the difficulties of building good economic models?