The Difference Between Positive Economic Statements and Normative Economic Statements

question 71

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

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Definitions:

Cultural Ideals

The values and norms that are widely held and celebrated within a culture.

Traditional Social Responsibility

The ethical framework that suggests an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.

Inner Circle

A small, intimate group of people who are considered to be close confidants or trusted advisors.

Tribal Members

Individuals who belong to a specific tribe or group, sharing common customs, traditions, and beliefs.