Positive economics differs from normative economics in that:
A)positive economics involves subjective outcomes.
B)positive economics deals with propositions that can be tested.
C)normative economics involves economic theory.
D)normative economics can be proved correct or incorrect.

Question

Quizplus · Accepted Answer

Positive economics is concerned with describing the way things are or predicting future outcomes based on facts and data, while normative economics is concerned with making value judgments and prescribing what ought to be. Positive economics deals with propositions that can be tested and verified, often through empirical research or statistical analysis. Normative economics, on the other hand, involves economic theory and subjective decision-making based on ethical or moral considerations, which cannot be proven correct or incorrect in the same way as positive economics.

Positive Economics Differs from Normative Economics in That