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:

Creative Intelligence

The ability to produce work that is both novel (original, unexpected) and appropriate (useful, adaptive concerning task constraints).

Linguistic-Relativity Hypothesis

The idea that the structure of a language affects its speakers' cognition or world view.

Nativist Theory

The hypothesis that some talents or capabilities are innate or embedded in the brain from birth.

Empiricist Theory

A philosophical perspective emphasizing that knowledge comes primarily from sensory experience and observation rather than inherent ideas.