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Positive vs. Normative Economics: Decoding Economic Statements Explain
Chapter 0, Problem 4(choose chapter or problem)
Identify each of the following statements as positive or normative, and explain your answer.
a. Society should take measures to prevent people from engaging in dangerous personal behavior.
b. People who engage in dangerous personal behavior impose higher costs on society through higher medical costs.
Questions & Answers
QUESTION:
Identify each of the following statements as positive or normative, and explain your answer.
a. Society should take measures to prevent people from engaging in dangerous personal behavior.
b. People who engage in dangerous personal behavior impose higher costs on society through higher medical costs.
ANSWER:Step 1 of 2
Positive economics deals with objective explanation, describing the world as it is. Normative economics, on the other hand, is subjective and prescriptive, describing how the world should be.
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Positive vs. Normative Economics: Decoding Economic Statements Explain
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Distinguish between positive and normative economic statements with real-world examples. Grasp the difference between objective explanations and value judgments in economics. Master the foundations of economic thought and their application.