Why Is It Important to Be Able to Distinguish Positive

question 229

Multiple Choice

Why is it important to be able to distinguish positive from normative statements about economic policy?

• A) Positive statements are always True and are the basis of economic policy while normative statements are False and should never be used.
• B) Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.
• C) Positive statements help us understand the value judgements towards a particular policy, while normative statements reflect the economy's response.
• D) Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments.