Final answer:
The confusion between factual and evaluative statements in economics revolves around the difference between positive statements, which are factual, and normative statements, which are based on personal values and cannot be proven true or false.
Step-by-step explanation:
People often struggle with differentiating between factual statements and opinions that are based on personal beliefs. In economics, this confusion is related to the difficulty in distinguishing between positive statements and normative statements. Positive statements can be tested and verified as they describe the world as it is, thus they are factual assertions. An example would be the analysis of a subway system's costs and benefits. On the other hand, normative statements are subjective and based on personal values, representing opinions about how the world should be, such as when discussing whether a country ought to take care of its less fortunate citizens. These cannot be proven true or false since they are evaluative and not factual claims.