positive/normative

• What are positive statements in economic methodology?


  Objective statements that can be tested and evaluated based on empirical evidence
• How do positive statements describe the world?


  They describe the world as it is without expressing value judgments
• In what context are positive statements often used?


  In economic analysis at both micro and macro levels
• What is an example of a positive statement regarding minimum wage?


  An increase in minimum wage will lead to higher unemployment amongst low-skilled workers
• What does the statement about UK inflation imply?


  Inflation in the past decade for the UK economy has averaged around two percent
• What tends to happen to demand for normal goods as consumer income increases?


  Higher demand for normal goods
• What characterizes normative statements?


  They carry one or more value judgments about what ought to be
• What type of considerations do normative statements often involve?


  Political considerations and personal beliefs
• Why are normative statements not testable through empirical analysis alone?


  They involve personal beliefs and ethical standpoints
• What is an example of a normative statement regarding education funding?


  The government should increase funding for state education to improve social welfare
• What does the normative statement about taxes on high-income earners suggest?


  Taxes should be lifted to reduce income inequality
• What does the normative statement about the Central Bank prioritize?


  Full employment over controlling inflation
• What is the implication of a sustained fall in house prices for the UK economy?


  It would be good for the UK economy in the long run
• What is the distinction between positive and normative statements?


  • Positive statements: Objective, testable, describe reality
  • Normative statements: Subjective, involve value judgments, express opinions
• What is the correct definition of a positive statement according to the questions posed?


  A positive statement can be tested using verifiable data
• What is the best description of a normative economic statement?


  A normative statement uses subjective arguments and value judgments
• What is an example of a leading question?


  Can you find an example from the options?
• What are the implications of positive and normative statements in economic analysis?


  • Positive statements help understand the economic world through empirical analysis
  • Normative statements guide policies based on ethical, political, and value-based considerations