One thing that distinguishes normative economic principles from positive economic principles is that:

A. normative principles are pessimistic and positive principles are optimistic.

B. normative principles reflect social norms, and positive principles reflect universal truths.

C. normative principles tell us how people should behave, and positive principles tell us how people will behave.

D. normative principles tell us how people will behave, and positive principles tell us how people should behave.

Question

Business

Mara Chen

10 December, 20:17

One thing that distinguishes normative economic principles from positive economic principles is that:

A. normative principles are pessimistic and positive principles are optimistic.

B. normative principles reflect social norms, and positive principles reflect universal truths.

C. normative principles tell us how people should behave, and positive principles tell us how people will behave.

D. normative principles tell us how people will behave, and positive principles tell us how people should behave.

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Answers (1)

Know the Answer?

Macie Hanson · Answer 1

The correct answer is letter "C": normative principles tell us how people should behave, and positive principles tell us how people will behave.

Explanation:

The discrepancy between the normative and positive statements in economics is substantially big. Economists use both types of statements when addressing economic issues with varying degrees of objectivity. Normative economics involves premises related to subjectivity and purpose. Positive economics, on the other hand, states facts and gives no sign of acceptance or disapproval.