Distinguishing Positive and Normative Economics

Steps:

• Recall that positive economics describes "what is" using facts and testable predictions.
• Identify normative economics as "what ought to be," involving opinions and values.
• Evaluate each choice against these definitions to find the accurate statement.
• Confirm the match with standard economic principles.

Why C is correct:

• Positive economics relies on objective analysis that can be empirically tested using data and evidence, as defined in economic methodology.

Why the others are wrong:

• A: Normative economics involves value judgments, not descriptions of models; positive economics handles factual descriptions.
• B: Normative economics is subjective and opinion-based, not objective or factual.
• D: Positive economics is objective and fact-driven, not subjective or judgmental.

Final answer: C