6.1.1 Positive and Normative Statements

• Positive statements are factual, objective statements about the world that can be empirically verified
• What is the nature of positive statements in terms of objectivity?

  Factual, objective
• Normative statements are based on evidence and data collection.

  False
• The unemployment rate in the UK is 4.2%, which is a factual, objective statement that can be empirically verified
• What is an example of a normative statement?

  The government should decrease unemployment
• Provide an example of a positive statement and its corresponding normative statement.

  Positive: Unemployment rate is 4.2% Normative: The government should decrease unemployment
• Normative statements express value judgments about what should or ought to be
• What is the nature of positive statements?

  Factual and objective
• What is an example of a normative statement regarding tax policy?

  The government should increase taxes on the wealthy
• What is the primary basis of positive statements?

  Evidence
• Match the statement type with its characteristic:

  Positive statement ↔️ Describes what is

  Normative statement ↔️ Describes what ought to be
• Positive statements can be tested using evidence, while normative statements cannot.


  True
• Order the following steps to summarize the differences between positive and normative statements:

  1️⃣ Identify factual and objective claims

  2️⃣ Recognize value judgments

  3️⃣ Distinguish between what is and what ought to be
• Match the example with the type of positive statement:

  The current inflation rate in the US is 3.2% ↔️ Verifiable economic data

  The Earth revolves around the Sun ↔️ Scientifically proven fact
• What is an example of a normative statement about education?

  It is the most important service
• What is the primary basis of positive statements?

  Evidence
• What type of statement describes factual, objective information about the world?

  Positive statement
• Why is it important to distinguish between positive and normative statements in economic analysis?

  To avoid biased decisions
• What are positive statements in economics?

  Factual, objective statements
• Normative statements can be empirically verified using evidence.

  False
• Positive statements can be empirically verified
• Give an example of a positive statement.

  The unemployment rate is 4.2%
• The Earth revolves around the Sun is an example of a normative statement.

  False
• Normative statements express value judgments and cannot be empirically verified
• What is a positive statement example?

  The unemployment rate in the UK is 4.2%
• Normative statements can be tested using evidence.

  False
• Normative statements are based on personal opinions, beliefs, or moral values
• Normative statements can be empirically verified.

  False
• Normative statements express value judgments about what should or ought to be
• What is an example of a positive statement about the unemployment rate in the UK?

  It is currently 4.2%
• Match the aspect with the type of statement:

  Factual and objective ↔️ Positive Statements

  Express value judgments ↔️ Normative Statements
• What is the key characteristic of positive statements?

  They are empirically verified
• Normative statements express subjective preferences and cannot be empirically verified.


  True
• Order the following steps to summarize the nature of normative statements:

  1️⃣ Recognize value judgments

  2️⃣ Express opinions or beliefs

  3️⃣ Understand that they cannot be empirically verified
• Match the aspect with the type of statement:

  Describe what is ↔️ Positive Statements

  Describe what ought to be ↔️ Normative Statements
• Normative statements can be tested using evidence, while positive statements cannot.

  False