The Distinction Between Positive and Normative Economics Is That Positive

question 68

Multiple Choice

The distinction between positive and normative economics is that positive economics deals with

• A) inflation; normative economics deals with unemployment.
• B) human wants; normative economics deals with resources.
• C) economic benefits; normative economics deals with economic costs.
• D) opportunity costs; normative economics deals with choice.
• E) descriptive statements and predictions about the world; normative economics deals with what ought to be.

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Definitions:

Critical Thinking

The disciplined process of actively and skilfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Deliberative Thinking

The process of carefully considering and rationalizing thoughts and options before making a decision or forming a judgment.

Active Thinking

The deliberate, conscious mental process of generating ideas, solving problems, and making decisions.

Universal Thinking

A way of thinking that applies general principles and reasoning to understand concepts and solve problems across different contexts.