Podcast
Questions and Answers
What is a positive statement?
What is a positive statement?
- A value judgment
- A statement of fact
- A subjective opinion
- An objective statement that can be tested (correct)
A fall in incomes will lead to a rise in demand for own-label supermarket foods.
A fall in incomes will lead to a rise in demand for own-label supermarket foods.
True (A)
The rising price of crude oil on world markets will lead to an increase in cycling to work.
The rising price of crude oil on world markets will lead to an increase in cycling to work.
True (A)
A rise in average temperatures will increase the demand for sunscreen products.
A rise in average temperatures will increase the demand for sunscreen products.
What defines a normative statement?
What defines a normative statement?
Pollution is the most serious economic problem.
Pollution is the most serious economic problem.
Unemployment is more harmful than inflation.
Unemployment is more harmful than inflation.
The government should support the market.
The government should support the market.
The government should target poverty by switching to means-tested benefits.
The government should target poverty by switching to means-tested benefits.
A rise in the price of petrol will lead to an increase in the demand for public transport.
A rise in the price of petrol will lead to an increase in the demand for public transport.
A rise in the HKD exchange should lead to a decrease in the rate of inflation.
A rise in the HKD exchange should lead to a decrease in the rate of inflation.
The National Minimum Wage should be raised to $6 per hour for all workers.
The National Minimum Wage should be raised to $6 per hour for all workers.
The government should abolish inheritance tax.
The government should abolish inheritance tax.
The European Single Currency ought to lead to a reduction in price differentials between the European states.
The European Single Currency ought to lead to a reduction in price differentials between the European states.
The government should extend the principle that patients should pay for many of the health treatments they receive under the National Health Service.
The government should extend the principle that patients should pay for many of the health treatments they receive under the National Health Service.
On average, women earn less than men.
On average, women earn less than men.
Women should earn as much as men.
Women should earn as much as men.
Increasing the minimum wage would be detrimental to the economy.
Increasing the minimum wage would be detrimental to the economy.
Study Notes
Positive Statements
- Positive statements are objective, testable assertions based on available evidence.
- They aim to explain economic phenomena and can be validated or disproven through experimentation and data.
- Examples of positive statements include:
- A fall in incomes leads to increased demand for own-label supermarket foods.
- Rising crude oil prices cause more people to cycle to work.
- Higher average temperatures boost demand for sunscreen products.
- A rise in petrol prices results in increased demand for public transport.
- A stronger HKD exchange rate correlates with lower inflation rates.
- On average, women earn less than men.
Normative Statements
- Normative statements are subjective and arise from personal opinions or value judgments; they cannot be tested.
- They typically involve opinions about what should happen, reflecting beliefs rather than objective facts.
- Examples of normative statements include:
- Pollution is the most serious economic problem.
- Unemployment is considered more harmful than inflation.
- The government should intervene in markets to provide support.
- The focus should shift to means-tested benefits to alleviate poverty.
- The National Minimum Wage should increase to $6 per hour.
- The government should abolish inheritance tax.
- The European Single Currency ought to reduce price differentials among European states.
- Patients should bear more costs for treatments under the National Health Service.
- Women should earn equal pay to men.
- Increasing the minimum wage is seen as harmful to the economy.
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