1.1.2 Positive and Normative statements Flashcards

1
Q

Positive statement

A

A statement that can be tested using evidence to see if it’s true or false.
E.g. inflation has increased by 1% in the last quarter

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2
Q

Normative statement

A

A statement that involves a value judgement.
E.g. Monetary policy is inefficient at getting an economy out of a recession

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3
Q

Role in policy making

A

-Economic decision made by individuals
-Policy decisions made by governments
-Will be based on value judgements (normative)
- As government and individuals make decisions based on their values and opinions

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