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Questions and Answers
What is a Positive Economics Statement?
What is a Positive Economics Statement?
- An opinion-based economic statement
- An approach based on value judgments
- An approach that includes words like ought or should
- An approach explaining outcomes without taking sides (correct)
What is true about Normative Economics Statements?
What is true about Normative Economics Statements?
Based on value judgments which cannot be tested as true or false.
Normative judgments have little influence in government policy-making.
Normative judgments have little influence in government policy-making.
False (B)
What major role do normative judgments have?
What major role do normative judgments have?
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Study Notes
Positive Economics Statement
- Utilizes a scientific approach to analyze economic policies and outcomes.
- Does not involve personal opinions or biases; aims for objective analysis.
- Assertions can be verified as true or false based on empirical evidence.
Normative Economics Statement
- Represents an opinion-based approach to economics, lacking empirical testability.
- Commonly contains subjective terms like "ought," "should," "fair," and "unfair."
- Suggests value judgments and ethical considerations that guide economic discussions.
Role of Normative Judgements
- Significantly influences decision-making processes in economics.
- Reflects individual preferences, beliefs, and subjectivity in assessments.
- Plays a crucial role in shaping government policies and regulations.
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Description
Test your knowledge on positive and normative economic statements with this flashcard quiz. Understand the differences between scientific and non-scientific approaches in economics while reinforcing essential definitions.
