Flashcards in Positive and Normative Economic Statements Deck (3)
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1
Q
Normative Statement
A
Normative statements express an opinion about what ought to be. They are subjective statements - i.e. they carry value judgments. For example, the level of duty on petrol is unfair and unfairly penalizes motorists.
2
Q
Positive Statement
A
Objective statements that can be tested or rejected by referring to the available evidence. Positive economics deals with objective explanation. For example: “A rise in consumer incomes will lead to a rise in the demand for new cars.” Or “A fall in the exchange rate will lead to an increase in exports overseas.”
3
Q
Value Judgement
A
A view of the rightness or wrongness of something, based on a personal view.
