Positive and Normative Statements Flashcards
What are positive statements?
Statements that are objective and that can be proven or refuted with evidence.
What are three examples of a positive statement?
1) A fall in incomes will result in a rise in demand for inferior goods.
2) Higher interest rates will reduce spending on white goods.
3) A rise in taxation will reduce inflation.
What are normative statements?
Statements that are subjective and are difficult to prove or refute with evidence.
What are three examples of a normative statement?
1) Poverty is the most serious economic problem.
2) Interest rates should fall to improve economic growth.
3) The government should ban diesel cars.
What is a value judgement?
An evaluative statement of how good/bad you think an action or idea is.
What is an example of a value judgement and why?
The government should improve access to education, as they believe that education is a good thing.
