Positive & Normative statements (pro study 19/09)

Question 1

What is a positive statement

Answer 1

A statement that can be tested and either verified or rejected, sufficient evidence

Question 2

Is this a positive or normative statement?

“Uk inflation in 2008 was 3.5%”

Answer 2

Positive statement
- Can test this theory against the actual data

Question 3

What is a normative statement

Answer 3

A statement that cannot be tested as it represents a sense of opinion, limited evidence

Question 4

Is this a positive or normative statement?

“Government should provide benefits to the unemployed”

Answer 4

Normative statement
- Cannot be tested it is an opinion

Question 5

What words tend to appear in normative statements

Answer 5

Should, Could, Needs, Must, Ought…

Question 6

what is the role of economists

Answer 6

They provide advice and policy recommendations to:
- Government departments
- Central banks
- Businesses

Question 7

Words that tend to appear in normative statements

Answer 7

Will, Has, Does

Question 8

What is value judgment

Answer 8

A statement that reflects someone’s opinion and is not supported by factual evidence.
- normative statement

Question 9

What is an objective judgment

Answer 9

A judgement based on facts rather than opinions.
- positive statement