Which of the following is a normative statement?
Select ONE answer:
- Increased government spending cannot reduce unemployment
- The imposition of import tariffs will reduce unemployment
- A policy of controlling inflation which results in increased unemployment is undesirable
- The level of social security benefits is the primary factor influencing the level of unemployment
- Increased government spending will lead to higher taxes
Give and explain 3 positive economic statements?
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This is multiple choice question is suitable for Economics KS5 classes.
The answer is 3 – You should know the basic distinction between normative and positive statements. This question tests whether you can apply that knowledge. At first, it seems that you have to have a huge level of knowledge. It covers various aspects of employment policy, inflation, and even international trade policy. But don’t panic. It isn’t very hard if you know the meaning of normative and positive. Recall that a positive statement is one that can, in principle, be tested by reference to evidence. A normative statement cannot be so tested. Now look at option 1 again – You do not have to have a view about the effect of government spending on employment, you just have to recognise that in principle it is possible to test this assertion by examining data relating to government spending and unemployment levels. Exactly the same argument applies to statement 2 – In this case, the evidence is very strong. Import tariffs tend to increase unemployment, but the issue is not whether the statement is correct – It is whether it is testable. Statement 4 & 5 are also clearly testable in principle. Now look at 3 once more – The word ‘undesirable’ is the key, as the word begs the question: desirable in whose eyes? Statement 3 can’t be tested by evidence.
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