1.1.2 - Positive & Normative Economic Statements Flashcards
1
Q
Describe Positive Statements
(5 Points)
A
~ Objective made without any obvious value judgement.
~ Based on empirical evidence
~ Tend to be statements of fact.
~ Can be proven true or false.
~ Often expressed in the form of a hypothesis.
2
Q
Describe Normative Statements
(2 Points)
A
~ Focuses on value judgements.
~ Cannot be proven or disproven.
3
Q
What Is The Role Of Value Judgements?
A
Influence individuals choices in the economic decisions they make.