Why is it important to be able to distinguish positive from normative statements about economic policy?

Question

Quizplus · Accepted Answer

It is important to be able to distinguish between positive and normative statements about economic policy because positive statements deal with what is and can be objectively tested, while normative statements deal with what ought to be and involve subjective value judgments. Positive statements help us understand the cause-and-effect relationships between economic forces and policy changes, while normative statements reflect personal opinions about what policies should or should not be implemented. Therefore, positive statements are crucial to understand the economic consequences of policy changes, whereas normative statements are important to understand people's preferences and values towards particular policies.

Why Is It Important to Be Able to Distinguish Positive