1.1.2 Positive and Normative economic statements

Question 1

Positive statements

Answer 1

Objective statements that can be tested or rejected by reffering to the available evidence

if you are positive of something you are certain due to facts

e.g. “A fall in the exchange rate will lead to a rise in the demand for new cars”

Question 2

Normative statements

Answer 2

Subjective statements that expess an opinion and carry value judgements

You decide if something is normal or not according to your opinion

e.g. “The level of duty on petrol is unfair and unfairly penalizes motorists”

Question 3

Value judgement

Answer 3

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