Positive and Normative Analysis quiz #3 Flashcards
Positive and Normative Analysis quiz #3
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Which of the following is a positive statement? 'The unemployment rate is 5%.' True or false: Important determinants of an industry's structure are economies of scale and revenue. True. These are positive factors affecting industry structure. When an organization states it wants to increase output by 10%, they have stated a(n): Goal, which is a normative statement if it expresses what ought to happen. A normative statement reflects opinions or beliefs, while a positive statement... Describes facts about how the world is. Planned approach vs market approach: what is the difference in terms of positive and normative analysis? A planned approach often involves normative goals; a market approach relies on positive analysis of outcomes. The role of an assumption in an economic theory is to... Simplify reality and allow for positive analysis of relationships. What is a key feature that distinguishes a positive statement from a normative statement? A positive statement is phrased as a factual claim about how the world is, while a normative statement expresses an opinion about how the world ought to be. Can a positive statement be false, and why? Yes, a positive statement can be false because its classification depends on how it is phrased, not its truthfulness. What keywords often indicate that a statement is normative? Keywords such as 'should,' 'ought to,' 'good idea,' or 'bad idea' often signal a normative statement. How can positive statements be evaluated for accuracy? Positive statements can be tested and verified using scientific methods to determine if they are true or false.
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