The Difference Between Positive Economic Statements and Normative Economic Statements

question 88

Multiple Choice

The difference between positive economic statements and normative economic statements is that:

• A)positive statements are based on opinion while normative statements are always true.
• B)positive statements are based on opinion while normative statements are based on fact.
• C)positive statements are true and normative statements are often false.
• D)positive statements are often false and normative statements are true.
• E)positive statements are based on fact while normative statements are based on opinion.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted as alpha.

Sunshine

The light and warmth that comes from the sun, essential for life on Earth and influencing weather and climate.

Standard Error of Estimate

A measure of the accuracy of predictions made with a regression line, representing the average distance that the observed values fall from the regression line.

Gas Mileage

The distance a vehicle can travel per unit quantity of fuel.