1.1.2 Positive And Normative Statements ✅ Flashcards
1
Q
What is a positive economic statement?
A
A scientific OBJECTIVE statement that can be TESTABLE.
2
Q
What is a normative statement?
A
A subjective statement that contains a valued judgment.
3
Q
What type of statement is this “the government should pay more to the unemployed”
A
Normative (should and ought are a big give away)
4
Q
What do ought and should indicate in an economic statement?
A
That it is normative.
5
Q
What type of economic statement is this “the construction sector will contract by 10% this year”
A
Positive economic statement.
6
Q
Why do economists consider normative and positive economic statements?
A
- need to know which one a statement is. (Says if the statement is objective or subjective)
- so a bias can be detected.
- to decipher what is real and what is desired.
