The difference between positive statements and normative statements is that
A) a positive statement involves a value judgment and a normative statement is a statement of fact.
B) a positive statement is a statement of fact and a normative statement involves value judgments.
C) value judgments are made in normative statements but assumed in positive statements.
D) normative statements are provable while positive statements are not.
Answer: B
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An inward shift of a nation's production possibilities frontier can occur due to
A) a natural disaster like a hurricane or bad earthquake. B) an increase in the labor force. C) a change in the amounts of one good desired. D) a reduction in unemployment.
Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. Because price controls were in
effect at the time the embargo occurred, an economist would have most likely predicted that A) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would increase sharply. B) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would decline sharply. C) long waiting lines and black markets would appear. D) a surplus of gasoline would result.
Which of the following is most likely to be a major source of growth in per capita GDP
What will be an ideal response?
The longest business-cycle expansion in U.S. history occurred during the ten years from:
A. 1991 until 2001. B. 1919 until 1929. C. 1959 until 1969. D. 1938 until 1948.