How can you tell the difference between a positive and a normative statement?
A positive statement is a statement that can be supported or refuted by evidence. For example, 'VAT is rising' is a statement that can be proved by comparing the tax rate from previous years to the current year. However, a normative statement is a value judgement. This means that they are subjective and are based on an opinion rather than actual evidence. These type of statements tend to include words like 'should', 'could', and 'unfair'.
AT
Related Economics A Level answers
All answers ▸The UK suffers from a persistent balance of trade deficit. what can the government do to rectify this and balance the trade figures?
A product with perfectly elastic supply has sales of 100 units per week at a price of £2 per unit. Price elasticity of demand is(-)1 .5 over the relevant range. The government imposes a tax 20%. What will be the government’s weekly tax revenue?
Explain the assumptions behind perfect competition and how firms behave under this market structure.
Evaluate the view that a depreciation of a nations currency, will always be a benefit to it's economy.