LS4 - Positive And Normative Economics Flashcards
1
Q
What are positive economic statements?
A
They can be proven true or false
2
Q
What are normative economic statements?
A
Opinions that cannot be proven true or false.
3
Q
What words are used in normative statements?
A
Fair, should, could, ought, better
4
Q
What two things do governments do in decision making?
A
Making value judgements, using positive analysis to help them make decisions
