1.1.2 Positive and normative statements Flashcards
(6 cards)
1
Q
positive statements
A
objective statements that can be tested by referring to the available evidence
2
Q
why are positive statements important?
A
because they can be tested to see whether economic ideas are correct
3
Q
example of a positive statement
A
‘a reduction in income will increase the amount of people shopping in pound shops’
4
Q
normative statements
A
subjective statements which contain a value judgement (opinions based)
5
Q
why are normative statements important?
A
value judgements influence decision-making and government policy
6
Q
example of a normative statement
A
a political party in government may wish to increase taxes for the rich to redistribute income to the poor
