1.1.2- Positive And Normative Economic Statements

Question 1

Positive statements

Answer 1

Objective statements that can be tested. E.g. A rise in consumer incomes will lead to a rise in demand for cars.

Question 2

Normative statements

Answer 2

Subjective statements that carry value judgement and cannot be tested. E.g. the level of duty on petrol is unfair.

Question 3

Value judgement

Answer 3

A view of the rightness or wrongness of something, based on a personal view.