The Difference Between Positive Economic Statements and Normative Economic Statements

question 77

Multiple Choice

The difference between positive economic statements and normative economic statements is that

• A)both c and e are true
• B)positive statements are based on opinion while normative statements are based on fact
• C)positive statements are true and normative statements are often false
• D)positive statements are often false and normative statements are true
• E)positive statements are based on fact while normative statements are based on opinion

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Definitions:

Sampling Distribution

The distribution of probabilities for a certain statistic, originating from a random sample.

Normal Distribution

In this type of distribution, occurrences of data are more frequent near the mean and decrease in frequency as they move away from the mean, with the distribution being symmetric.

Sampling Distribution

The probability distribution of a statistic based on random samples from a population, used to estimate population parameters.

Standard Deviation

An indicator of the degree to which a dataset's values vary or are dispersed, showing the extent of deviation from the average.