Which of the following statements about economic analysis is true?
A) Unlike positive economic analysis, normative economic analysis can be tested.
B) Neither positive nor normative analysis can be tested.
C) Positive economic analysis is concerned with "what is," whereas normative economic analysis is concerned with "what ought to be."
D) Economics is primarily about normative analysis, which measures the costs and benefits of different courses of action.

Question

Quizplus · Accepted Answer

Positive economic analysis is concerned with describing and explaining economic phenomena, while normative economic analysis involves making value judgments about how the economy should operate. As such, positive analysis can be tested and evaluated based on empirical evidence, while normative analysis is more subjective and open to debate.

Which of the Following Statements About Economic Analysis Is True