Question

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."

A) Matt’s statement is normative while Jean’s statement is positive B) Both Matt’s and Jean’s statements are normative C) Matt’s statement is positive while Jean’s statement is normative D) Both Matt’s and Jean’s statements are positive

Answer 1

Answer:

C) Matt’s statement is positive while Jean’s statement is normative

Explanation:

In the above example, Matta and Jeana both make economic statements. Matta makes a positive statement which is based on facts and cannot be biased. Jeana on the other hand makes a normative statement which is based on what she thinks the economy should be or her definition/judgement of something economically fair.