L4 - Positive & Normative Economics Flashcards
1
Q
What are positive statements?
A
Objective statements that can be proven true or false
2
Q
What are normative statements?
A
Subjective statements that express opinions - can’t be proven true or false
3
Q
What words are usually used in normative statements?
A
Should
Fair
Ought
Must
Better
4
Q
What do governments do when making decisions?
A
Make normative judgments on economic issues
Use positive analysis to help make the decisions
