1.1.2 Positive and Normative Statements

Question 1

What are positive statements

Answer 1

objective statements that can be tested, amended or rejected by referring to the available evidence
Positive economic deal with objective explanation and test and rejection of theories

Question 2

What are Normative statements

Answer 2

subjective statements

they carry a value of judgement

Question 3

Is value judgement important

Answer 3

most economic decisions and policy are influenced by value judgement and they vary from all agents of the economy
It helps us to explains why economic policies vary from places and time periods