What is the difference between a positive economic statement and a normative economic statement?
A) A positive statement must be true; a normative statement is often NOT true.
B) A normative statement must be true; a positive statement is often NOT true.
C) A positive statement can be verified; a normative statement cannot.
D) A normative statement can be verified; a positive statement cannot.

Question

What is the difference between a positive economic statement and a normative economic statement?  
A) A positive statement must be true; a normative statement is often NOT true. 
B) A normative statement must be true; a positive statement is often NOT true. 
C) A positive statement can be verified; a normative statement cannot. 
D) A normative statement can be verified; a positive statement cannot.

Quizplus · Accepted Answer

A positive economic statement is a statement that describes how the economy works and can be verified through empirical evidence. It is based on facts and data, rather than opinions or beliefs. On the other hand, a normative economic statement is a statement that expresses value judgments or opinions about what should be. It is based on personal beliefs and cannot be verified by empirical data. Therefore, option C is the correct explanation as it distinguishes the two types of statements based on their verifiability.

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