Whenever statements embodying values are made, we enter the realm of
A) positive economics.
B) normative economics.
C) microeconomics.
D) macroeconomics.

Question

Quizplus · Accepted Answer

Whenever someone is making a statement embodying values, they are making a judgment about what should or should not be, rather than simply describing what is (positive economics). This falls under the realm of normative economics, which deals with value judgments about economic policies and outcomes. Microeconomics and macroeconomics refer to the level of analysis (individuals/firms vs. the economy as a whole) and are not relevant to this question.

Whenever Statements Embodying Values Are Made, We Enter the Realm