Which statement is TRUE?
I. Economics can answer questions about which value judgments are most important.
II. Economics cannot answer questions about what is sacred.
III. Economists fail to distinguish between normative and positive economics.

Question

Quizplus · Accepted Answer

Economics is a social science that focuses on the allocation of scarce resources to satisfy unlimited wants and needs. Economics cannot answer questions about what is sacred because these questions involve personal beliefs or values that cannot be measured or quantified. Similarly, economists are trained to distinguish between normative statements, which involve value judgments or opinions, and positive statements, which are objective and can be tested or verified. Therefore, statement I is incorrect. Statement III is also incorrect because economists are expected to make this distinction in their research and analysis. Therefore, the correct answer is C, only statement II is true.

Which Statement Is TRUE