The difference between positive economic statements and normative economic statements is that:
A)positive statements are based on opinion while normative statements are always 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 based on facts and can be verified or tested. They describe how the economy actually works and are typically used to make predictions. Normative economic statements, on the other hand, are based on opinions and value judgments. They express how the economy should work or what policies should be implemented. These statements cannot be verified or tested since they are subjective and depend on individual beliefs or values. Therefore, the best choice is E - positive statements are based on fact while normative statements are based on opinion.

The Difference Between Positive Economic Statements and Normative Economic Statements