Purchase Solution

Normative vs Positive statements

Not what you're looking for?

Ask Custom Question

4) Identify whether the following statements fall into normative or positive economics. Explain: (3 marks each)

a) An increase in price causes a decrease in quantity demanded.

b) Lowering unemployment through government job creation creates inflation as well.

c) The best way out of the recession is through budget cuts and borrowing.

Attachments
Purchase this Solution
Solution Summary

The solution provides the differences between normative and positive economic statements.

Solution Preview

For this question you will need to recall the distinction between normative and positive economics. Normative economics deals with ambiguous ideas such as fairness and justice. When someone says that it's desirable to reduce the ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • positive vs normative statements

    291370 Positive vs normative statements Identify whether the following statements are positive or normative economic statements, and explain why you categorized them in that way. a.

  • positive statements and normative statements

    98278 Positive Statements and Normative Statements Define positive statements and normative statements. Which are positive, which are normative?

  • Type of proposition to get a consensus

    Positive statements, on the hand, are supported by evidence and are based on unbiased arithmetic instead of opinion.

  • opportunity cost and a trade off

    Why do you think it is important for the public to be able to differentiate normative statements from positive statements in these recommendations?

  • Positive and normative economic decisions

    Positive statements are those supported by facts. Economically speaking we could say, increasing people's incomes makes the economy grow. Normative statements are value judgments. We might ask, how much should the economy grow?

  • This posting addresses positive and normative economics.

    463362 Positive and Normative Economics What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, do ethics play in positive economics?

  • Positive vs Normative Statement

    629322 Positive vs Normative Statement Explain the difference between a positive and normative statement. Give an example of each type of statement. How can an economy achieve points that are outside the production possibilities curve?

  • Difference Between Positive and Normative Economics

    392007 Difference Between Positive and Normative Economics What is the difference between positive and normative economics? Which is more prevalent in today's economies? Why? What role, if any, does ethics play in positive economics?

  • Positive and normative economic analysis

    Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis? a. The inheritance tax should be repealed because it is unfair. b.

View More Related Solutions