Duty Folding
March 20th, 2010
state and explain whether the following statements is positive or normative economics?
1.excise duty on cars should be reduced.
2.the farm loan waiver in the budget of 2008 is a desirable policy.
3.with a change in investment the national income of the economy will increase many fold.
4.when the price of the commodity increases seller will sell more of the commodity.
5.deficit financing is good for economy.
6.govt. should not borrow money.
A positive statement is fact. It doesn’t actually have to be true. For instance, “it is raining” is a positive statement even if it’s snowing outside.
A normative statement is a claim that attempts to prescribe how the world should be. In other words, it is an opinion. “Minimum wage should be higher” is a normative statement.
1. Normative because of the “should.” Clearly it’s someone’s opinion and not a fact.
2. Normative because of the “is a desirable policy” part. That is debatable.
3. Positive. Even if this doesn’t happen, it’s not an opinion.
4. Positive. Same as 3
5. Normative. Opinion.
6. Normative. This statement is also an opinion. There’s no way to prove this.
Cold Steel Spartan Heavy duty Tactical Folding knife review part 1 by Tex
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