Micro - Positive & Normative Statements ✔️ Flashcards
What are Positive Economic Statements?
A statement that is concerned with facts and is value free, they can be tested to find if they are true or false
State 2 examples of Positive Economic Statements
1) An increase to the national minimum wage will cause unemployment.
2) Government-provided healthcare increases public expenditures
What are Normative Economic Statements
A statement concerned with opinions usually an expression that something is right or wrong, it includes words such as “should, fair, unfair, better or worse”
State 2 examples of Normative Economic Statements
1) The reduction of the UK top rate of income tax from 50% to 45% is unfair
2) Women should be provided higher school loans than men
3) Laborers should receive greater parts of capitalist profits
4) Working citizens should not pay for hospital care
Explain role of value judgements in influencing economic decision making and policy.
A value judgement is an evaluative statement of how good or bad you think an idea or action is. A value judgement is often prescriptive, i.e. a normative view might be expressed that reveals certain attitudes or behaviours towards the world
