Economic Methodology

Question 1

what is a positive statement

Answer 1

Positive statements are objective. They can be tested with factual evidence, and can
consequently be rejected or accepted.

Question 2

what is a normative statement

Answer 2

Normative statements are based on value judgements. These are subjective and
based on opinion rather than factual evidence.

Question 3

what is a value judgement

Answer 3

Value judgements can influence economic decision making and policy