What Is the Difference Between Normative and Positive Economics

question 19

Multiple Choice

What is the difference between normative and positive economics?

• A)Normative economics concerns the how and why of economic activity while positive economics concerns what should be.
• B)Positive economics concerns what is, while normative economics concerns what should be.
• C)Both concern the how and why of economic activity, while only positive economics also concerns what should be.
• D)Neither deals with the how and why of economic activity, but normative economics concerns what should be.
• E)Positive economics is used in Microeconomics, while normative economics is used in Macroeconomics.

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Definitions:

Liabilities With Priority

Liabilities with priority refer to debts or obligations that must be paid before others in the event of a liquidation or bankruptcy.

Liabilities With Priority

Financial obligations that must be paid before other debts in the event of a liquidation or bankruptcy.

Liquidated

The process of converting assets into cash or paying off liabilities using the company's assets at the end of its life or during bankruptcy.

Liquidation

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, often occurring when a company is insolvent.