1.1.2 - positive and normative statements

Question 1

Positive statement

Answer 1

An objective statement which can be tested empirically with quantifiable data. Facts that are either true or false.

Question 2

Normative statement

Answer 2

Subjective value judgements which expresses opinions. Can’t be tested/proved by empirical data or factual evidence.

Question 3

How do value judgements influence the decision making and economic policy?

Answer 3

Governments make value judgements (normative) on economic issues and use this to decide how involved they get in the economy.