1.1.2 Positive and normative economic statements

Question 1

What is a positive economic statement?

Answer 1

Objective statements that can be tested by referring to the available evidence

Question 2

What is a normative economic statement?

Answer 2

Subjective statements which can contain a value judgement - they’re opinions

Question 3

What are key words in Normative statements?

Answer 3

“Should” and “Could”