LS4 -Positive and Normative Economics

Question 1

Positive Economic Statements

Answer 1

These are statements that can be proven true or false. They are objective statements

Question 2

Normative Economic Statements

Answer 2

These are statements that are opinion based and are subjective

Question 3

Governments when making economic decisions consider

Answer 3

-Value Judgement (based on subjective reasoning)
-Positive analysis

Question 4

Governments when making economic decisions consider

Answer 4

-Value Judgement (based on subjective reasoning)
-Positive analysis