Positive and normative economics

    Cards (3)

    • Positive economics what can it be?
      Is testable- can prove or disprove therefore refutable
    • Nominative economics - what is it?
      Opinion driven ‘should’, ‘ought’, ‘best’, ‘worse’, ‘I think’ - A statement that involves a value judgement
      about what ought to be
    • Economic policy is influenced by value judgements
      Therefore, some economics is normative
      Economists try to use positive statements and rely
      on data to support their views and policies.