6.1.1 Positive and Normative Statements

• What are positive statements in economics?

  Factual claims about the world
• Positive statements are testable using empirical evidence.


  True
• An example of a positive statement is: "Unemployment rates increased by 2%
• What is the nature of positive statements according to the table provided?

  Factual, descriptive
• Positive statements are based on personal opinions rather than facts.

  False
• An example of a normative statement is: "The government should reduce taxes."
• Positive statements focus on what is the case rather than what should be.


  True
• Normative statements can be directly tested and proven true or false using empirical data.

  False
• Normative statements express value judgments about what should or ought to be, rather than what is
• Normative statements reflect personal opinions and value judgments
• Normative statements express subjective views about what is desirable or preferable
• Positive statements describe what is rather than what should be.
• Positive statements are factual claims about the world that can be tested
• What is the nature of a positive statement?

  Factual, descriptive
• Positive statements are objective, while normative statements are subjective
• Give an example of a positive statement related to unemployment rates.

  Unemployment rates increased by 2% last month
• Normative statements express value judgments or opinions.

  True
• Positive statements are based on facts, while normative statements are based on values and opinions.
• What is the definition of a normative statement?

  Expresses value judgments
• Match the normative statement with its characteristic:

  The government should reduce taxes ↔️ Prescriptive

  Minimum wage laws are unfair ↔️ Subjective
• Order the key characteristics of positive and normative statements:

  1️⃣ Nature: Factual vs. Value-based

  2️⃣ Verification: Testable vs. Not directly testable

  3️⃣ Subjectivity: Objective vs. Subjective
• Positive statements describe what is, whereas normative statements describe what should be.is
• Normative statements are prescriptive because they recommend a course of action.


  True
• What type of statements explain how things work or exist?

  Positive statements
• What type of statements recommend or advocate for a particular course of action?

  Normative statements
• Normative statements reflect subjective views about what is desirable or preferable
• Policymakers rely on factual information from positive statements to make informed decisions
• Separating positive and normative claims avoids confusion in discussions.


  True
• Distinguishing between positive and normative statements leads to more rigorous, evidence-based reasoning
• Positive statements describe what is rather than what should be.is
• What is a key characteristic of positive statements in terms of subjectivity?

  Objective
• Positive statements express value judgments or opinions.

  False
• Positive statements can be verified using empirical evidence.
• What is the nature of normative statements in contrast to positive statements?

  Expresses value judgments
• Positive statements describe observable economic facts
• Normative statements express value judgments or opinions
• The key difference between positive and normative statements is that positive statements are based on facts
• Normative statements cannot be proven or disproven using empirical evidence.


  True
• Order the key characteristics of positive and normative statements as they appear in the table.

  1️⃣ Nature: Factual vs. Expresses value judgments

  2️⃣ Verification: Testable vs. Not directly testable

  3️⃣ Subjectivity: Objective vs. Subjective
• Positive statements are factual claims that can be verified using empirical evidence.


  True