Positive and Normative Statements Flashcards
1
Q
What type of science is economics?
A
A social science.
2
Q
What is a social science?
A
Observation of human behaviour.
3
Q
What is demand theory?
A
When prices are lower, consumers spend more money.
4
Q
What is a positive statement?
A
Statements which can be tested as to whether they are true or not against facts and evidence.
5
Q
What are normative statements?
A
These are opinionated and contain value judgements in it. They contain word such as should.
