Question

As you can already guess, an essentialist economist believes that theory building is a science, meaning theories can describe things that are true (“what is”). They say these objective truths are facts and therefore aren’t based on value judgments. They call this fact-based approach ____ economics. On the other hand, they say, policy analysis is not a science, which means policies are up for debate. For example, what action is best to solve hunger? The policy decisions that are made are based on people’s opinions and value judgments (their ideas about “what should be”). Essentialist economists call this ____ economics." -- Cramer and Markowitz

diacritic; ominous

emotional; rational

normative; positive

positive; normative

discrete; continuous

Answer 1

The correct option is positive;normative .

Positive economics is a fact-based approach which is easily verifiable and objective and it is not based on value judgements. It answers to questions that focuses on what is happening or what has happened.

Normative economics are value based judgements, statements and opinions of economic policies. It evaluates an outcome or a situation of economic behaviour. It answers to questions that focuses on what should happen.