Economics Multiple Choice Question – 23 September 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics

Which ONE of the following best describes the two statements below?

  • Statement 1: The UK government increased education spending from £87 billion in 2012 to £88 billion in 2013.
  • Statement 2: The government should allocate an additional £2 billion to schools to improve the quality of education.

Select ONE answer:

Statement 1               Statement 2

  1. Positive                    Positive
  2. Positive                    Normative
  3. Normative               Positive
  4. Normative               Normative
  5. Definite                    Normative

 

With reference to the statements above explain what is meant by external benefits in relation to Education.

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 2 – Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic statements do not have to be correct, but they must be able to be tested and proved or disproved. Normative economic statements are opinion based so they cannot be proved or disproved. Statement 1 is fact based, whilst statement 2 is an opinion (use of the word ‘should’ in the sentence).

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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