Which of the following statements correctly differentiates between positive and normative economics?
A) Positive economics is descriptive, whereas normative economics is advisory.
B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do.
C) Positive economics is based on judgments, whereas normative economics is not.
D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.

Question

Quizplus · Accepted Answer

Positive economics is concerned with describing and explaining economic phenomena, while normative economics is focused on making value judgments and offering advice on what ought to be done. Therefore, Choice A is the correct statement that differentiates between these two fields of economics.

Which of the Following Statements Correctly Differentiates Between Positive and Normative