Use the following two statements to answer this question: I. In order to answer normative questions, it is necessary to make value judgments.
II) In order to conduct positive economic analysis, it is always necessary to use empirical evidence in addition to economic theories.
A) I and II are incorrect.
B) I is correct, II is incorrect.
C) I is incorrect, II is correct.
D) Both I and II are correct.

Question

Quizplus · Accepted Answer

I is correct because normative questions involve statements about what ought to be and thus depend on value judgments. II is incorrect because positive economic analysis can be conducted using theoretical models without necessarily incorporating empirical evidence, though empirical evidence can enhance the analysis.

Use the Following Two Statements to Answer This Question: I