1.1.2 - Positive & Normative Economic Statements

Question 1

Describe Positive Statements
(4 Points)

Answer 1

~ A statement which is objective and made without any obvious value judgement or emotions.
~ Based on empirical evidence and tend to be statements of fact.
~ Can be proven true or false.
~ Often expressed in the form of a hypothesis that can be analysed and evaluated.

Question 2

Describe Normative Statements
(2 Points)

Answer 2

~ Focuses on value judgements, these judgements are built around opinions and beliefs as to what the best economic policies or solutions may be.
~ Cannot be proven or disproven.

Question 3

What Is The Role Of Value Judgements?

Answer 3

Influence individuals choices in the economic decisions they make.