Positive and Normative economic statements Flashcards
1
Q
What is a positive statement?
A
A positive statement is a factual statement. It is testable
2
Q
What is a normative statement?
A
A normative statement is a statement that involves a value judgement about what ought to be. It cannot be tested
3
Q
What is a value judgment?
A
A value judgement is a statement based on personal opinion or beliefs rather than on facts
4
Q
How do value judgements influence economic decision making and policy?
A
Different people, and political parties, may have different views about what is desirable for society
