Positive & Normative Economics

Question 1

What is a Normative Statement?

Answer 1

Is a suggestion and is heavily opinionated, no facts to prove that the statement is true.

Question 2

What is a Positive Statement?

Answer 2

Are statements that can be tested and proved, based on evidence.

Question 3

TEST - The government should enforce minimum prices for beers and largers sold in supermarkets and off-Licenses in a bid to control alcohol consumption.

Answer 3

NORMATIVE

Question 4

TEST - A fall in income will lead to a rise in demand for own-label supermarket foods.

Answer 4

POSITIVE

Question 5

TEST - Pollution is the most serious economic problem.

Answer 5

NORMATIVE

Question 6

TEST - If the government raises the tax on beer, this will lead to a fall in profits of the brewers.

Answer 6

POSITIVE

Question 7

TEST - The retirement age should be raised to 70 to combat the effects of our ageing population

Answer 7

NORMATIVE

Question 8

TEST - The rising price of crude oil in markets will lead to an increase in cycling to work.

Answer 8

NORMATIVE

Question 9

TEST - A rise in average temperatures will increase the demand for sun screen products.

Answer 9

POSITIVE

Question 10

TEST - The government is right to introduce a ban on smoking in public places.

Answer 10

NORMATIVE