1.1.2 Positive and normative economic statements

Question 1

Normative statements

Answer 1

An opinion about what ought to be.

Normative statements are subjective statements - i.e. they carry value judgments.

Question 2

Positive statements

Answer 2

Objective explanation.

Positive statements can be tested or rejected by referring to the available evidence.

Question 3

Value judgement

Answer 3

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