Which of the following statements is true?
A) Positive economics describes what people ought to do.
B) Normative economics describes what people actually do.
C) Positive economics generates objective descriptions that can be verified with data.
D) Normative economics is free from the value judgments, tastes, and preferences of economic agents.

Question

Quizplus · Accepted Answer

Positive economics aims to provide objective analysis and explanations of economic behavior that can be tested using empirical data, while normative economics involves subjective value judgments about what should or ought to be done. Therefore, statement C is the only one that accurately describes positive economics.

Which of the Following Statements Is True