1.4 Positive And Normative Economics Flashcards
1
Q
What are positive statements?
A
These can be proven true or false.
They are objective statements.
They are based on data which are not influenced by opinion.
They can be tested
2
Q
What are normative statements?
A
They express opinions and can’t be proven true or false
They are subjective statements
They carry value judgment
3
Q
What is a value judgment?
A
-It is an evaluative statement of how good or bad you think an idea or action is
-Value judgment can influence economic decision making and policy
