1.1.2 positive and normative statements Flashcards
1.1 what is the nature of economics?
1
Q
what is a positive statement?
A
are objective, factually based comments that can be tested; they are impartial or unbiased.
- not influenced by opinions or prejudice
- allow scientific testing that can be accepted or rejected
2
Q
what is a normative statement?
A
are subjective, questionable comments that are difficult to test; are partial or biased.
*Requires Value Statements
3
Q
what are value statements?
A
is a statement that has been put forward by an individual that cannot be verified. (difficult to challenge)
4
Q
economic judgments and decision making and policies are based on…
A
positive economics and value judgements
5
Q
what can influence peoples views concerning the best options?
A
- positive consequences of different decisions
- moral and political judgements (the best option for one person may not be the best for society)
