See the answer. ANS: F PTS: 1 18. When an economist evaluates a positive statement, he or she is primarily examining evidence. The article tries to inquire a third way in normative ethics between consequentialism or utilitarianism and deontology or Kantianism. Examples of Positive vs. Normative … Normative philosophy is also more concerned with those things that aren’t necessarily observable, like morals and beliefs. Instead, they incorporate the opinions and underlying morals and standards of those people making the statements. The con-cept of “direction of fit” can elucidate the distinction. Economics is concerned primarily with positive analysis, which measures the costs and benefits of different courses of action.” McConnell et al—Positive economics focuses on facts and cause and effect relationships…. E) a positive economic statement is a moral judgment, while a normative economic statement is not a moral judgment. To elaborate, on one end of the spectrum, we have positive statements, and on the other hand, we have normative statements. to losers because the latter primarily comprises businesses. There are different things that we get to study when we take up economics as a discipline. To be a positive economic statement, an assertion must be factual. is primarily concerned with the decisions of individual households. Normative ethics, that branch of moral philosophy, or ethics, concerned with criteria of what is right and wrong. Normative economics (as opposed to positive economics) is a part of economics whose objective is fairness or what the outcome of the economy or goals of public policy ought to be.. Economists commonly prefer to distinguish normative economics ("what ought to be" in economic matters) from positive economics ("what is"). Question 1 To explain the distinction between Descriptive and Normative Statements one first has to understand the difference between Descriptive and Normative Ethics. B) a and b are positive statements, c and d are normative statement. Normative theories attempt to tell us what we should do and how we ought, morally speaking, to live. What Is. Although the EU employs its normative power primarily to shape the political preferences of its neighboring small states and thus construct a normative hegemon in the European periphery, ASEAN’s normative influence is more concerned about intervention by the great powers of Asia. ANSWER: c 86. C) Only a is a positive statement, b, c and d are normative statements. This form of ethics is studied primarily by psychologist, sociologist and anthropologist. B) a normative statement must be true, while a positive statement is often not true. Descriptive ethics primarily describes people’s moral beliefs, claims and behaviors. It includes the formulation of moral rules that have implications for what human actions, institutions, and ways of life should be like. Show transcribed image text. Generally speaking, normative theories take into account (1) the agent (the person who acts) (2) the act itself and (3) the consequences of that act. C) a positive statement can be verified, while a normative statement cannot be verified. Difference Between Normative and Positive Analysis : Economics is the study of how the different players concerned with the production and consumption of goods and services interact. Normative statements usually use factual evidence as support, but they are not by themselves factual. they carry value judgments. This form of ethics is studied primarily by psychologist, sociologist and anthropologist. b. Normative analysis refers to the process of making recommendations about what action should be taken or taking a particular viewpoint on a topic. Descriptive ethics primarily describes people’s moral beliefs, claims and behaviors. Consequentialism is a class of normative, ... Derek Parfit described Hooker's book as the "best statement and defence, so far, of one of the most important moral theories." This does not mean that accountants have to get formal training in normative (i.e. Normative economics statements are rigid and prescriptive in nature. It is the business of the benevolent man to seek to promote what is beneficial to the world and to eliminate what is harmful, and to provide a model for the world. Examples of such models are the Lotka-Volterra model of predator-prey interaction in biology, the IS-LM model in macroeconomics, and the ideal-gas model in statistical mechanics. ANS: T PTS: 1 19. This problem has been solved! 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