LS4 - Positive and Normative Statements

Question 1

What are positive economic statements?

Answer 1

Positive economic statements can be prove true or false. They are objective statements. They usually have a measure that makes the statement positive

Question 2

What is a normative economic statement?

Answer 2

Normative economic statements express opinions and cannot be proven true of false. They are subjective statements. They typically include words like fair, unfair, should, ought, better, and worse

Question 3

What do governments do when decision making?

Answer 3

Governments make value judgements on economic issues and use positive analysis to help them make decisions