The Difference Between a Positive Economic Statement and a Normative

question 133

Multiple Choice

The difference between a positive economic statement and a normative statement is that

• 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 statements can be verified; a positive statement cannot
• E)a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment

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Definitions:

Comparative Advertising

A marketing strategy where a brand's product or service is directly compared to a competitor's to highlight its superiority.

Pure Monopoly

A market structure where a single seller has exclusive control over a product or service, with no close substitutes available.

Unique Product

A good or service that is distinct in its features, benefits, or value propositions from others in the market.

Monopolistic Competition

A market structure characterized by several competitors offering differentiated products or services, allowing for some degree of pricing power.