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Positive Economics Differs from Normative Economics in That

Question 37

Multiple Choice

Positive economics differs from normative economics in that


A) positive economics deals with how people react to changes in benefits, and normative economics deals with how people react to changes in costs.
B) positive economic statements are testable, and normative statements are not.
C) positive economic statements tell us what we should be doing, and normative economics tells us what we should have done.
D) positive economic statements focus on the application of the theory, and normative economic statements are theoretical.

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