Economic methodology

Question 1

Statements

Answer 1

Positive statements aim to describe and explain economic events without expressing personal opinions. On the other hand, normative statements and value judgements involve personal perspectives and opinions on how things should be.

Question 2

Example of positive statements

Answer 2

The CPI inflation in 2017 was 3%

Question 3

Example of normative statements

Answer 3

The government should try reduce inequality

Question 4

Example of value judgement

Answer 4

It is morally wrong for corporations to prioritise profits over environmental sustainability