Answer to Question #202187 in Microeconomics for Andrew

Question

Categorise the following statements into normative and positive statements:

a)    GDP declined by 2% in the second quarter of 2020. 

b)    South Africa hosted the World Cup in 2010.

c)     Interest rates are too low to support savings in South Africa.        

d)    The weakening of the rand will cause an increase in petrol prices. 

e)   Jane is a better dancer than Kelly.

Answer 1

a)    GDP declined by 2% in the second quarter of 2020: positive statement.

b)    South Africa hosted the World Cup in 2010: positive statement.

c)     Interest rates are too low to support savings in South Africa: normative statement.

  

d)    The weakening of the rand will cause an increase in petrol prices: normative statement.

e)   Jane is a better dancer than Kelly: normative statement.