What is the difference between a positive economic statement and a normative one?
A) Positive economic statements are descriptive in nature, while normative economic statements are quantitative.
B) Positive economic statements are used to explain economic behaviour, while normative economic statements are used to predict economic behaviour.
C) Positive economic statements are descriptive in nature, while normative economic statements involve value judgments.
D) Positive economic statements involve value judgments, while normative economic statements are descriptive in nature.

Question

Quizplus · Accepted Answer

Positive economic statements describe what is happening in the economy without any value judgment. They can be tested and proven true or false. Normative economic statements involve value judgments and reflect subjective opinions about what ought to be happening in the economy. They cannot be proven true or false, but can be evaluated based on the underlying values and assumptions.

What Is the Difference Between a Positive Economic Statement and a Normative