1.1 Nature Of Economics 1.1.2

Question 1

What is a positive economic statement?

Answer 1

A positive economic statement is a statement that can be tested and verified using facts and data.

they are objective

Question 2

What is a normative economic statement?

Answer 2

A normative economic statement is an express of opinion about what ought to be.

It doesn’t include facts and can’t be tested

Question 3

True or False: Positive economic statements can be proven or disproven through observation and testing.

Answer 3

True

Question 4

Give an example of a positive economic statement.

Answer 4

Unemployment rate is 5% in the country.

Question 5

Give an example of a normative economic statement.

Answer 5

The government should increase minimum wage to reduce poverty.