What is the difference between these 2 statements His new car is green His new car is a terrible shade of green AQA Econ 1 Markets and market failure 116 What you need to know Candidates should be able to distinguish between positive and normative statements ID: 279158
Download Presentation The PPT/PDF document "1.1.6 Value judgements, positive and nor..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
1.1.6 Value judgements, positive and normative statementsWhat is the difference between these 2 statements?His new car is greenHis new car is a terrible shade of green
AQA Econ 1: Markets and market failureSlide2
1.1.6 What you need to knowCandidates should be able to distinguish between positive and normative statementsThey should understand how value judgements influence economic decision-making and policySlide3
Positive statementsPositive statements are objective, factually based comments that can be tested
They are not influenced by the opinion or prejudice of people
They allow scientific testing to take place that can be accepted or rejected
For example, the unemployment rate is 8% is a positive statement because it is based on factual evidence
Positive statements
are impartial or unbiased.
Analysis should be based on positive statements i.e. they should be based on factual evidence. Slide4
Normative statementsNormative statements are subjective, questionable comments that are difficult to test
They are influenced by the opinion or prejudice of people
For example, the government should increase spending to help reduce the unemployment rate
Normative statements require
value judgements
A value judgment is a statement that has been put forward by an individual that cannot be verified factually
Normative statements
are partial or biased.
Value judgements
are opinions put forward by individuals that are difficult to test.
Many students use normative statements which undermine the validity of their arguments. Evaluation is based on value judgements. However, these judgements should derive from prior analysis.Slide5
Positive and NormativePositive
Normative
Politician
News reporter
Sports commentator
Teacher
In pairs identify examples of when these professions use positive and normative statements.
I
dentify positive and normative statements used in this BBC news article.Slide6
Value judgements influence economic decision-making and policy Economic agents have to choose between alternative optionsFor every decision made there is an opportunity cost
Basing decision-making on positive statements is likely to lead to certain outcomes e.g. increasing the price of a normal good will reduce demand
However, the future by definition, is uncertain
This means that choices have to be made that will lead to uncertain outcomes
Economic decision-making and policy are based on both positive economics and value judgements Slide7
Quick testWhich of the following is a positive statementThe government should reduce the unemployment rate to below 7%The inflation rate has been above the government target of 2.0 % for over a year
Society should take greater care of the elderly
There needs to be a change of government to improve the performance of the economy
Can you explain your answer?Slide8
Positive and normative statementsWrite one positive and one normative statement about:Today’s lessonThe UK economyProduction possibility diagrams