Positive and normative statements

Question 1

1.

positive statement

Answer 1

A positive economic statement is a statement that can be verified true or false.

Question 2

normative statement

Answer 2

A normative economic statement is an opinion. It is a view that others may disagree with.

Question 3

positive statement examples

Answer 3

-In the UK, Dec 2017 CPI inflation is 3.0%
-In the UK the rate of unemployment has increased by 50% in the past three years.

Question 4

normative statement examples

Answer 4

The MPC should not be concerned about the rise in CPI inflation because it is due to temporary factors.
Unemployment is more important than inflation in the current economic situation
The MPC should increase interest rates to deal with the rise in inflation.
The government should try to reduce inequality
Privatisation leads to a more efficient allocation of resources