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SingaporeEconomicsQuick questions
The Central Economic Problem
Quick questions on Positive and normative economics explained: H2 Economics
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are positive statements?Show answer
A positive statement is objective: it describes what is, was, or will be, and can in principle be tested against evidence. It can be shown to be true or false by looking at the facts.
What are normative statements?Show answer
A normative statement is a value judgement about what ought to be. It cannot be settled by evidence alone, because it rests on opinions about what is good, fair or desirable. Signal words include should, ought, fair, too much, and better.
What is q1?Show answer
Classify "the inflation rate was 3 percent last year" and explain. [2 marks]
What is q2?Show answer
Explain why "the government should reduce inequality" is a normative statement. [2 marks]
What is q3?Show answer
Explain why policy decisions cannot be made by positive analysis alone. [3 marks]
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