1.1.2 Positive and normative economics statements

Question 1

What is a positive statement?

Answer 1

A statement that can be tested, Can be proved either true or false depending on separate evidence and testing.

Question 1

Example of a positive statement.

Answer 1

An increase in sugary foods will increase unhealthy lifestyles and obesity.

Question 2

What is a normative statement?

Answer 2

Can be value judgements that cannot be proved true nor false.

Question 3

Example of a normative statement.

Answer 3

Any opinions, such as the retirement age should be 80.

Question 4

Roles of value judgements in economic decision making?

Answer 4

Value judgements is the fact that arguments and statements can be backed up by evidence.