Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

We leave you to analyze the remaining eight statements to decide
precisely why each is either positive or normative. Remember to apply
the two tests. First, is the statement only about actual or alleged facts? If
so, it is a positive one. Second, are value judgments necessary to assess
the truth of the statement? If so, it is normative.


Disagreements Among Economists


Economists often disagree with one another in public discussions,
frequently because of poor communication. They often fail to define their
terms or their points of reference clearly, and so they end up “arguing
past” each other, with the only certain result being that the audience is
left confused.


Another source of disagreement stems from some economists’ failure to
acknowledge the full state of their ignorance. There are many points on
which the evidence is far from conclusive. In such cases, a responsible
economist makes clear the extent to which his or her view is based on
judgments about the relevant (and uncertain) facts.

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