Which of the Following Is a Difference Between Positive Economics

question 68

Multiple Choice

Which of the following is a difference between positive economics and normative economics?

• A)Positive economics helps us understand an economy's response to a particular policy, while normative economics reflects value judgments.
• B)Positive economics helps us understand the positive effects of a policy change, while normative economics helps us understand the negative results of a policy change.
• C)Positive economics is a branch of microeconomics, while normative economics is a branch of macroeconomics
• D)Positive economics is a branch of macroeconomics, while normative economics is a branch of microeconomics.
• E)Positive economics is used by economists to evaluate the performance of an economy, while normative economics is used by governments to formulate economic policies.

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Definitions:

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.

Dividend Payout

Dividend payout refers to the portion of a company's earnings distributed to shareholders as dividends.

Profit Margin

A financial metric used to assess a company's profitability by calculating the percentage of revenue that exceeds the costs of goods sold.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business.