//
you're reading...
Others

Economists and Economic Policy

EXECTECH

Economists play a major role in helping governments to devise economic policy. In order to consider this role, it is necessary to distinguish between positive and normative statements.

A positive statement is a statement of fact. It may be right or wrong, but its accuracy can be tested by appealing to the facts:

e.g. ‘Unemployment is rising’.

e.g. ‘Inflation will be over 6% by next year’.

e.g. ‘If the government cuts taxes, imports will rise’.

These are all examples of positive statements. They do not necessarily have to be true, but we can test whether they are true or false by looking at evidence. If we make a prediction, we will have to wait to see what happens.

A normative statement is a statement of value: a statement about what ought or ought not to be, about whether something is good or bad, desirable or undesirable:

e.g. ‘It is right…

View original post 256 more words

Advertisements

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

acquista ABC ITALIA, edizione 2016

Click here to download “Brexit?”, Fugazzi’s new book on the EU Referendum

ABC Economipedia, 2nd edition now out!

London One Radio

PIL – Professionisti Italiani a Londra

%d bloggers like this: