Which of the Following Statements Correctly Differentiates Between Positive and Normative

question 42

Multiple Choice

Which of the following statements correctly differentiates between positive and normative economics?

• A) Positive economics is descriptive, whereas normative economics is advisory.
• B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do.
• C) Positive economics is based on judgments, whereas normative economics is not.
• D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.

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Definitions:

Old Stimulus

A previously encountered stimulus that may trigger a familiar response or behavior due to past experiences.

Existential View

A philosophical stance emphasizing individual freedom, choice, and responsibility, focusing on the search for meaning and dealing with the existential dilemma of human existence.

Rollo May

An American existential psychologist, known for his works on the existential identity and anxieties of modern humans.

Viktor Frankl

An Austrian neurologist and psychiatrist as well as a Holocaust survivor, who founded logotherapy, a form of existential analysis focused on finding purpose through life's challenges.