The Difference Between a Positive Economic Statement and a Normative

question 87

Multiple Choice

The difference between a positive economic statement and a normative economic statement is that:

• A)a positive statement must be true,while a normative statement is often not true.
• B)a normative statement must be true,while a positive statement is often not true.
• C)a positive statement can be verified,while a normative statement cannot.
• D)a normative statement can be verified,while a positive statement cannot.
• E)a positive economic statement is a moral judgment,while a normative economic statement is not a moral judgment.

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Definitions:

Scarce Resources

Resources that are limited in availability and can run out if not used efficiently, leading to the necessity of making choices on how to allocate them.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace.

Economic Prosperity

The state of flourishing, thriving, good fortune, and/or successful social status in terms of wealth, health, and happiness.

Incentives

Forms of motivation that aim to encourage people to perform actions or undertake activities by providing rewards or benefits.