Statements

• Positive Statements:

  Can be tested

  Based on true facts

  Can be true or false
• Normative Statement:

  Can NOT be tested

  Based in value judgments

  your opinions

  (Would/should
• An positive statement about the UK economy is that unemployment rate would decrease if more firms open
• A normative statement about interes rate is that Interest rates SHOULD be lower
• The basic economic problem we have infinite wants and needs but we have finite resources