1.1.2 Positive and Normative Economic Statements

Question 1

what is a positive economic statement

Answer 1

objective statements that can be proved or disproved. they include what was or will be and these statements can be verified as being true or false by reference to the data.

Question 2

what is a normative economic statement

Answer 2

value judgements and are therefore subjective. they include words like should, ought, fair, unfair, better, worse

Question 3

is “most healthcare should be provided free at the point of use” positive or normative

Answer 3

normative

Question 4

is “biofuels and oil are substitutes in the energy industry” positive or normative

Answer 4

positive