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
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
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