positive & Normative Statements Flashcards
1
Q
What are positive statements?
A
- based on empirical evidence can be proven to be true or false
2
Q
examples of positive statements
A
- The UK unemployment rate has fallen from 4% to 3.7% in the past three months
- Increasing the minimum wage last year in the UK resulted in improvements to wage inequality
- Prices in the UK have risen dramatically, partly due to the 20% increase in the price of oil
3
Q
What are normative statements?
A
- focuses on value judgements.
- These judgements are built around opinions and beliefs as to what the best economic policies or solutions may be
4
Q
Examples of normative statements
A
- Every economy should aim to provide free healthcare for its citizens
- Corporation taxes in an economy should be higher than personal income taxes
- The best way to deal with a rise in crime is to employ more police
5
Q
How do valued judgements influence individuals?
A
- can influence decisions which can be related to any part of their lives, from what they eat, to where they work, to how they maintain their health
- For example, deciding not to eat meat is often a value judgement based around unethical methods of food production.
6
Q
How do value judgements, influence governments choices?
A
- influences in regards to the economic policies they choose to adopt and spend money on
eg
The USA spends more money on imprisoning drug users than rehabilitating them
In the UK, the Government has recently increased its spending on rehabilitation