Question

Normative economists are like scientists and positive economists are like policy advisors. State true or false.

• A. True
• B. False

Answer 1

The correct option is B

False

The given statement is false. In positive economics, economics is treated as a tool for objective analysis - the objective is to understand why things are the way they are. In normative economics, economists go beyond just explaining the world, but try to improve the world based on some norms or values. Hence, positive economists are like scientists and normative economists are like policy advisors.