Normative economics involves value judgments that cannot be empirically tested, while positive economics describes the facts of the economy.

Question

Quizplus · Accepted Answer

Normative economics is based on value judgments and opinions about what ought to be, making it subjective and not empirically testable. Positive economics, on the other hand, focuses on describing and explaining economic phenomena as they are, using factual and objective analysis.

Normative Economics Involves Value Judgments That Cannot Be Empirically Tested