Positive and Normative Statements Flashcards
1
Q
Positive Statements
A
Objective statements that can be tested using evidence
2
Q
Normative Statements
A
A value judgement that represents a statement of opinion
3
Q
Why are economists interested in positive statements?
A
- can be backed up with evidence/data
4
Q
Why are economists interested in normative statements?
A
can instruct economic models to judge whether or not they are good
