The Difference Between Positive and Normative Economics Is That

question 175

Multiple Choice

The difference between positive and normative economics is that:

• A) positive economics is what you are learning in school whereas normative economics is what you will learn in the real world.
• B) normative economics is based on proven fact whereas positive economics is based on what should be.
• C) positive economics describes, explains, and predicts economic events whereas normative economics recommends what economic policies should look like.
• D) economists always use positive economics whereas politicians always use normative economics.

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Definitions:

Private Corporations

Businesses owned by non-governmental organizations or a relatively small number of shareholders or company members which do not offer or trade their company stock to the general public on the stock market.

Single Owner

Refers to a business structure where a single individual owns, manages, and is responsible for all aspects of the business, often known as sole proprietorship.

Legal Entity

An individual, company, or organization that has legal rights and obligations.

Satisfactory Income

The level of profit that meets or exceeds the expectations and needs of the business or its stakeholders.