Why is it important to be able to distinguish positive from normative statements about economic policy?
A) Positive statements are always True and are the basis of economic policy while normative statements are False and should never be used.
B) Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.
C) Positive statements help us understand the value judgements towards a particular policy, while normative statements reflect the economy's response.
D) Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments.

Question

Quizplus · Accepted Answer

It is important to distinguish positive from normative statements about economic policy because positive statements help us understand how the economy responds to a particular policy, while normative statements reflect value judgments. This distinction is important because it helps us avoid confusing our opinions about what ought to be done with our understanding of what actually happens in the economy.

Why Is It Important to Be Able to Distinguish Positive