The Distinction Between Positive and Normative Economics

question 30

Multiple Choice

The distinction between positive and normative economics

• A) is that positive economics applies only to microeconomic problems.
• B) is that normative economics applies only to microeconomic problems.
• C) explains why economics is not a social science but a natural science.
• D) helps us to understand why economists sometimes disagree with one another.

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Definitions:

Responsiveness

The quality of reacting quickly and positively to stimuli or requests.

Antianxiety Drugs

Medications used to treat anxiety disorders by reducing symptoms such as worry, fear, and panic attacks.

Exposure Therapy

A psychological treatment that involves gradually and systematically exposing individuals to the objects or situations they fear to reduce anxiety.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, severe anxiety, and uncontrollable thoughts about the event.