Question

6. Problems and Applications Q6 Classify each of the following statements as positive or normative. Positive Normative Statement A reduction in the rate of money growth will reduce the rate of inflation. Lower tax rates encourage more work and more saving Policy makers face trade-off between equality and efficlency. The government should limit unemployment benefits to last for only two years. Economic development should not take place at the expense of social justice.

Answer 1

Positive statements are based on fact which can be tested to be true or false and are value-free/free of one's judgment

Normative Statements are subjective value judgments that cannot be proven or disproven and vary from person to person.

Positive Statements-A,B,C

Normative Statements-D and E

Answer 2

ANSWER :

First one : Positive

Second one : Positive

Third one : Positive

Fourth one : Normative

Fifth one : Normative