1.1.6 Value judgements, positive and normative
statements
What is the difference between these 2 statements?
• His new car is green
• His new car is a terrible shade of green
AQA E CON 1: M ARKETS AND
MARKET FAILURE
1.1.6 W HAT
YOU NEED TO KNOW

Candidates should be able to distinguish
between positive and normative statements

They should understand how value judgements
influence economic decision-making and policy
P OSITIVE
Positive statements are
impartial or unbiased.
STATEMENTS

Positive statements are objective, factually based comments that can
be tested

They are not influenced by the opinion or prejudice of people

They allow scientific testing to take place that can be accepted or
rejected

For example, the unemployment rate is 8% is a positive statement
because it is based on factual evidence
Analysis should be based on positive statements i.e. they
should be based on factual evidence.
N ORMATIVE
Normative statements
are partial or biased.
Value judgements are
opinions put forward by
individuals that are
difficult to test.
STATEMENTS

Normative statements are subjective, questionable comments that are
difficult to test

They are influenced by the opinion or prejudice of people

For example, the government should increase spending to help reduce
the unemployment rate

Normative statements require value judgements

A value judgment is a statement that has been put forward by an
individual that cannot be verified factually
Many students use normative statements which
undermine the validity of their arguments. Evaluation is
based on value judgements. However, these judgements
should derive from prior analysis.
P OSITIVE
AND
N ORMATIVE
In pairs identify examples of when these professions use positive
and normative statements.
Positive
Normative
Politician
News reporter
Sports
commentator
Teacher
Identify positive and normative statements used in this
BBC news article.
VALUE
JUDGEMENTS INFLUENCE ECONOMIC
DECISION - MAKING AND POLICY

Economic agents have to choose between alternative options

For every decision made there is an opportunity cost

Basing decision-making on positive statements is likely to lead to certain
outcomes e.g. increasing the price of a normal good will reduce demand

However, the future by definition, is uncertain

This means that choices have to be made that will lead to uncertain
outcomes

Economic decision-making and policy are based on both positive
economics and value judgements
Q UICK


TEST
Which of the following is a positive statement
a)
The government should reduce the unemployment rate
to below 7%
b)
The inflation rate has been above the government target
of 2.0 % for over a year
c)
Society should take greater care of the elderly
d)
There needs to be a change of government to improve
the performance of the economy
Can you explain your answer?
P OSITIVE AND NORMATIVE
STATEMENTS

Write one positive and one normative statement about:

Today’s lesson

The UK economy

Production possibility diagrams