1.1.2 Positive & Normative

Question 1

Define positive statement

Answer 1

objective statements that can be tested or rejected by referring to available evidence

Question 2

Define normative statements

Answer 2

subjective statements which can’t be supported/refuted as it is a value judgement

Question 3

Differences between positive and normative statements

Answer 3

Positive
- fact
- can be proven
- objective
- evidence based
- definitive words
- can be about future

Normative
- value judgment
- can’t be proven
- subjective
- opinionated
- uses words like less, might, ought

Question 4

Evaluate positive and normative statements

Answer 4

distinction between both statements isn’t clear

positive statements are used to understand economics through analysis

normative statements express opinion and guide desicions