Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy?
A)Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments.
B)Their positive statements help us understand the good results of a policy change, and their normative statements help us understand the negative results.
C)We really do not have to worry about them since trained economists never make normative statements.
D)Economists are always making assumptions, and policy should not be based on assumptions.

Question

Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy?
A)​Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments.
B)​Their positive statements help us understand the good results of a policy change, and their normative statements help us understand the negative results.
C)​We really do not have to worry about them since trained economists never make normative statements.
D)​Economists are always making assumptions, and policy should not be based on assumptions.

Quizplus · Accepted Answer

Distinguishing between positive and normative statements is important because positive statements describe what "is" while normative statements describe what "ought" to be, based on value judgments. As members of Congress, their normative statements may have a significant impact on economic policy decisions. It is important to separate their value judgments from objective analysis of the economy's response to a particular policy.

Suppose There Are Two Members of the U