1.1.2 normative/positivism statements

• Example of a positive statement 


  An increase in interest rates will reduce house prices
• a positive statement always


  is capable of being tested
• a statement which involves a value judgement 


  the gov must devote more resources to health care
• example of a normative statement 


  gov’s must intervene in markets
• in terms of the distribution of income 


  whether it is equitable depends on a value judgement
• the distribution of income across the uk is unequal. this is a….


  positive economic statement