Which of the Following Statements About Differences Between Positive and Normative

question 157

Multiple Choice

Which of the following statements about differences between positive and normative economics is TRUE?

• A)Positive statements are concerned with what people think while normative statements are concerned with what people do.
• B)Positive statements are true while normative statements are false.
• C)Positive statements are concerned with "what is" while normative statements are concerned with what someone thinks should"be.
• D)Positive statements are concerned with "what is" while normative statements are concerned with what will be.

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Definitions:

Increase in Demand

A situation where more consumers are willing and able to purchase a good or service at each possible price, leading to a shift in the demand curve to the right.

Government Raise

An increase in government revenue, often achieved through raising taxes or adjusting fiscal policies, to support government spending.

Tax

A compulsory financial charge imposed by a governmental organization in order to fund various public expenditures.

Per Capita Consumption

The average consumption of goods and services per person within a particular population.