In economics, a positive statement is one that attempts to assess an objective reality without making a value judgment. For example, a study on rental costs would be an example of positive economics. A study that claims that the rent is too high is an example of normative economics. What I...
the study of what ‘ought to be’ in economics rather than what ‘is’. For example, the statement that ‘people who earn high incomesoughtto pay more income tax than people who earn low incomes’ is a normative statement. Normative statements reflect people's subjective value judgements of ...
Which statement is consistent with the law of supply? What is a fallacy of composition? What does the "law of demand" imply? What's the 43% Rule? What is a definition of externalities? What is a marginal decision? What is the fallacy of composition? Give an example. ...
An example of a normative economic statement is: "The government should provide basic healthcare to all citizens." As you can deduce from this statement, it is value-based, rooted in personal perspective, and satisfies the requirement of what "should" be. One of the most famous normative eco...
Finally, the section concludes with a chapter wherein Hill interprets the Doctrine of Virtue as Kant's statement of his normative ethics. Thomas E. Hill, Jr.: Virtue, Rules, and Justice: Kantian Aspirations Yet, as is textually made explicit in texts such as the Bodhicaryavatara, Siksasam...
Determine whether the following statement is positive or normative: "The government should prohibit charging more than $3.00 per gallon for gasoline." Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to s...
is a positive statement, since it conveys factual, testable information about the world. Statements such as: The unemployment rate is too high. The government must take action in order to reduce the unemployment rate. are normative statements, since they include value judgments and are of a pres...
Identify the difference between positive and normative economics. An economic theory is: a. a generalization that summarizes what we understand about economic choices. b. a positive statement that cannot use the ceteris paribus clause. c. usually mor...
Welfare economics uses the notion of optimality defined by Vilfredo Pareto. In a somewhat subtle definition, optimality is defined by a lack of a particular (‘Pareto’) type of possible improvement. An outcome is optimal if the situation does not allow for a ‘Pareto improvement.’ A Pareto ...
HowtorespondtoquestionsinEconomics Anormativestatementisavaluejudgement andstateswhatsomeonethinks‘oughttobe’. Normativestatementsaresubjectiveand influencedbypersonalbiases,background, personalpolitics Tocleanupairqualityandcutdowncarbon emissionsby25%,4x4vehiclesshouldonlybe ...