Normative and Positive
What does the "price mechanism" in a free market economy do?
It acts as a signalling device to indicate changes in consumer demand or producer supply.
Are opinion based (don't say in an exam) or "valued base" statements. A normative statement is an expression that something is right or wrong so often includes the words ought, should or better.
Normative Statement
It is good to use progressive taxation in a market economy to reduce inequality.
Normative Statement - valued judgement.
The government ought to increase the funding for overseas development.
Normative Statement - valued judgement.
The government should increase funds to the NHS in order to bring down death rates.
Normative Statement - valued judgement.
The introduction of a ban on smoking in public places is a good thing as smoking is anti-social.
Normative Statement - valued judgement.
This is a statement that cannot be tested. It is a value judgment.
Normative Statement - valued judgement.
Are statements which can be tested. They are not based on opinion. These statements are concerned with facts - that can be shown to be right or wrong. "What if"
Positive Statement
Government revenue from taxation on smoking has fallen as a result of the ban on smoking in public places.
Positive Statement - can be tested proven right or wrong.
Increasing government spending on education should increase academic achievement by students as they have access to better facilities and more resources.
Positive Statement - can be tested proven right or wrong.
Inequality is typically greater in market economy than a centrally planned economy.
Positive Statement - can be tested proven right or wrong.
Introducing a minimum wage will help to remove poverty.
Positive Statement - can be tested proven right or wrong.
Reducing state pensions will save the government money. It can then spend this money on other services.
Positive Statement - can be tested proven right or wrong.
The government should seek to reduce inflation in order to improve the UK's international competitiveness.
Positive Statement - can be tested proven right or wrong.
This is a statement that can be tested. It is free from value judgement. It can be factually correct or incorrect.
Positive Statement - can be tested proven right or wrong.