IAI CB2 Practice Questions - IAI Subject CB2 Business Economics Exam

Which statement best distinguishes positive economics from normative economics?

Positive economics makes value judgements; normative economics is fact-based Positive economics is about objective, testable statements; normative economics involves value judgements Both are purely subjective and cannot be tested Positive economics applies only to firms; normative economics applies only to governments

Correct Answer:

Positive economics is about objective, testable statements; normative economics involves value judgements

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