Lesson 1.1.2

1.1.2 Positive and normative economic statements Quiz: Pearson Edexcel Economics, Unit 1

20 questions

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Lesson 1.1.2, Positive and normative economic statements: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.

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The 20 questions

  1. Which word in an economic statement most strongly indicates that it is normative?

    • Increases
    • Should
    • Reduces
    • Causes

  2. What type of economic statement can be tested and verified using real-world data?

    • Moral claim
    • Normative statement
    • Value judgement
    • Positive statement

  3. What feature distinguishes a normative economic statement from a positive economic statement?

    • Empirical proof
    • Numerical data
    • Historical evidence
    • A value judgement

  4. Which term describes a judgement about what is desirable, which then influences economic decisions and policy?

    • Value judgement
    • Opportunity cost
    • Marginal utility
    • Ceteris paribus assumption

  5. Statements containing subjective views about desirable economic outcomes are based on what?

    • Mathematical proofs
    • Ceteris paribus
    • Objective facts
    • Value judgements

  6. What directly shapes which economic policy goals a government chooses to prioritise?

    • Market forces
    • Scientific data
    • Price signals
    • Value judgements

  7. A statement that a sales tax will increase consumer prices is classified as what?

    • A value judgement
    • A positive statement
    • An ethical claim
    • A normative statement

  8. An economist states that rent controls reduce housing supply. What type of statement is this?

    • Value judgement
    • Normative statement
    • Moral opinion
    • Positive statement

  9. The assertion that a carbon tax ought to be introduced is an example of what?

    • Positive statement
    • Economic model
    • Normative statement
    • Market failure

  10. Describing a top rate of income tax as unfair is an example of what?

    • Equilibrium price
    • Opportunity cost
    • Value judgement
    • Positive fact

  11. Two economists agree on a tax's numerical outcome but disagree on implementing it. Why?

    • Conflicting empirical facts
    • Flawed economic models
    • Different value judgements
    • Incorrect statistics

  12. Which of the following describes an economic statement that can be tested against factual evidence?

    • Positive statement
    • Subjective statement
    • Normative statement
    • Value judgement

  13. What causes economists to disagree on policy options despite analysing identical empirical evidence?

    • Conflicting evidence
    • Mathematical errors
    • Incorrect data
    • Different value judgements

  14. Which classification best applies to the statement: 'Lowering interest rates increases aggregate demand'?

    • Ethical statement
    • Positive statement
    • Normative statement
    • Value judgement

  15. How is the statement 'The government should increase spending on healthcare' classified in economics?

    • Positive statement
    • Factual statement
    • Normative statement
    • Empirical statement

  16. What element turns a positive economic forecast into a normative policy recommendation?

    • A data set
    • A statistical test
    • An empirical study
    • A value judgement

  17. What is required to decide if an economic policy outcome is desirable?

    • A scientific law
    • A statistical test
    • A value judgement
    • A positive model

  18. In the statement 'Higher taxes reduce spending, so taxes should fall', what is 'taxes should fall'?

    • A factual claim
    • A positive statement
    • An empirical prediction
    • A normative statement

  19. What does separating positive analysis from normative conclusions help economists to identify clearly?

    • Data shortages
    • Mathematical errors
    • Value judgements
    • Market failures

  20. What makes the claim that healthcare is the most important public service normative?

    • Objective evidence
    • Statistical data
    • Mathematical models
    • Value judgements

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