Asked by Kayla Evelyn on Apr 24, 2024

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Normative economics ________ and positive economics ________.

A) involves judgments; does not involve judgments
B) involves judgments; also involves judgments
C) does not involve judgments; involves judgments
D) does not involve judgments; also does not involve judgments

Normative Economics

A branch of economics that focuses on what ought to be or what should happen, often involving judgments and prescriptions for economic policy.

Positive Economics

A branch of economics that seeks to describe and explain the economy as it actually is, without making judgments about its effectiveness.

Judgments

Decisions or conclusions reached after consideration, often in a legal context or in personal assessment.

  • Identify the differences between normative and positive economics.
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KS
Kelly Samuels6 days ago
Final Answer :
A
Explanation :
Normative economics involves value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal, whereas positive economics deals with what is, describing and explaining economic phenomena without resorting to judgments.