Which of the following best describes the relationship between positive and normative statements in economics?
A)Positive and normative statements are alternate ways of describing the desirability of certain economic policies.
B)Normative statements evaluate the desirability of certain economic changes; positive statements do not.
C)Economists generally agree with each other regardless of whether a question is positive or normative.
D)Neither positive nor normative statements are concerned with the desirability of certain economic changes.
E)Normative statements are those with which all economists agree; positive statements may give rise to some disagreement.

Question

Quizplus · Accepted Answer

Positive statements are descriptive and do not involve value judgments. They describe what is, was, or likely to be, and can be tested against facts. Normative statements, on the other hand, involve value judgments and prescribe what ought to be. They are subjective and cannot be tested against facts. Therefore, normative statements evaluate the desirability of certain economic changes, while positive statements simply describe them.

Which of the Following Best Describes the Relationship Between Positive