The principal distinction between positive analysis and normative analysis is that
A)positive analysis is useful and normative analysis is not useful.
B)positive analysis is optimistic and normative analysis is neutral.
C)economists always agree on the conclusions of positive analysis but could disagree on the conclusions of normative analysis.
D)positive analysis tells us "what is," but normative analysis tells us "what ought to be."

Question

Quizplus · Accepted Answer

Positive analysis deals with factual statements and what exists in the real world, while normative analysis is concerned with subjective value judgments and recommendations about what should be done. Positive analysis informs us about the cause-effect relationship, and normative analysis involves evaluating and suggesting action based on subjective moral or ethical positions.

The Principal Distinction Between Positive Analysis and Normative Analysis Is