Understanding the distinction between positive and normative economic statements is important because it
A) enables us to derive better forecasts of macroeconomic aggregates such as GDP
B) explains why economics is not a physical science
C) is the primary distinction between macroeconomics and microeconomics
D) provides a framework for understanding differences among economists
E) enables us to see the rationale behind economic models

Question

Quizplus · Accepted Answer

Understanding the distinction between positive and normative economic statements helps to clarify why economists may have different opinions, as positive statements are based on facts and can be tested, while normative statements are based on value judgments.

Understanding the Distinction Between Positive and Normative Economic Statements Is