The difference between positive economic statements and normative economic statements is that
A)both c and e are true
B)positive statements are based on opinion while normative statements are based on fact
C)positive statements are true and normative statements are often false
D)positive statements are often false and normative statements are true
E)positive statements are based on fact while normative statements are based on opinion

Question

Quizplus · Accepted Answer

Positive economic statements are statements about what is, while normative economic statements are statements about what ought to be. Positive statements are based on observable facts and can be tested and proven or disproven, while normative statements are based on opinions and values, and are subjective. Therefore, positive statements are based on facts and data, while normative statements are based on subjective opinions and values.

The Difference Between Positive Economic Statements and Normative Economic Statements