A normative statement reflects opinions or beliefs, while a positive statement:

• A. describes facts that can be tested or verified
• B. expresses value judgments about what ought to be
• C. is based solely on personal preferences
• D. cannot be proven true or false

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the difference between normative and positive statements in economics. Normative statements express opinions or value judgments about what ought to be, while positive statements are objective and fact-based.
2. Step 2: Recognize that a positive statement describes facts that can be tested or verified through evidence or data, making it possible to prove them true or false.
3. Step 3: Eliminate options that describe normative statements, such as those expressing value judgments or personal preferences, since these cannot be objectively tested.
4. Step 4: Identify the option that correctly defines a positive statement as one that describes facts that can be tested or verified.
5. Step 5: Conclude that the correct answer is the one stating that a positive statement 'describes facts that can be tested or verified.'