Positive vs. Normative Statements: Dissecting Economic Claims

Economics Grades High School 5:00 Video
Print Lesson Plan Watch Video

Lesson Description

This lesson explores the crucial distinction between positive and normative statements in economics. Students will learn to identify and analyze the different types of claims, enhancing their understanding of economic discourse and policy debates.

Video Resource

Normative and positive statements | Basic economics concepts | AP Macroeconomics | Khan Academy

Khan Academy

Duration: 5:00
Watch on YouTube

Key Concepts

  • Positive Statements
  • Normative Statements
  • Testability
  • Objective Analysis
  • Subjective Opinion

Learning Objectives

  • Students will be able to define positive and normative statements.
  • Students will be able to differentiate between positive and normative statements in economic contexts.
  • Students will be able to analyze economic claims and identify underlying assumptions.

Educator Instructions

  • Introduction (5 mins)
    Begin by introducing the concepts of positive and normative statements. Explain that positive statements are testable claims about how the world is, while normative statements are opinions or value judgments about how the world should be. Briefly mention the importance of distinguishing between the two in economic analysis.
  • Video Viewing (10 mins)
    Play the Khan Academy video: "Normative and positive statements | Basic economics concepts | AP Macroeconomics | Khan Academy". Instruct students to take notes on the key definitions and examples provided in the video.
  • Guided Practice (15 mins)
    Lead a class discussion based on the examples from the video. Ask students to explain why each statement is classified as either positive or normative. Encourage them to identify the words or phrases that signal a normative claim (e.g., "should," "ought to," "fair," "unfair"). Present additional examples and have students classify them individually or in small groups.
  • Application Activity (15 mins)
    Provide students with a list of economic statements from news articles or policy debates. Have them work in pairs or small groups to classify each statement as positive or normative and explain their reasoning. Ask each group to share their analysis with the class.
  • Conclusion (5 mins)
    Summarize the key differences between positive and normative statements. Emphasize the importance of recognizing these distinctions in economic analysis and policy discussions. Briefly discuss how normative beliefs can influence the selection and interpretation of positive economic models.

Interactive Exercises

  • Statement Sort
    Create a set of cards with various economic statements written on them. Divide students into groups and have them sort the cards into two categories: Positive and Normative. Each group should justify their classifications.
  • Debate Analysis
    Present students with excerpts from a real-world economic debate (e.g., minimum wage, tax policy). Have them identify the positive and normative arguments made by each side.

Discussion Questions

  • Why is it important to distinguish between positive and normative statements in economics?
  • Can a statement be both positive and normative? Explain.
  • How can personal values or beliefs influence economic analysis?

Skills Developed

  • Critical Thinking
  • Analytical Skills
  • Economic Reasoning
  • Communication

Multiple Choice Questions

Question 1:

Which of the following is a positive statement?

Correct Answer: Lowering taxes will lead to higher economic growth.

Question 2:

A normative statement is based on:

Correct Answer: Value judgments

Question 3:

Which of the following words often indicates a normative statement?

Correct Answer: Should

Question 4:

The primary difference between positive and normative statements is that positive statements:

Correct Answer: Can be tested or disproven.

Question 5:

Which of the following is an example of a normative economic statement?

Correct Answer: The government should provide healthcare for all citizens.

Question 6:

What best describes positive statements in economics?

Correct Answer: Claims that can be tested and validated or refuted

Question 7:

Which of the following statements can be tested?

Correct Answer: Increasing the minimum wage leads to job losses

Question 8:

Which of the following statements exemplifies a normative economic perspective?

Correct Answer: Government intervention in markets is always detrimental

Question 9:

What characterizes normative statements?

Correct Answer: They cannot be tested

Question 10:

If a student claims that 'the government should offer free college education to everyone', which type of statement is this?

Correct Answer: A normative statement

Fill in the Blank Questions

Question 1:

A __________ statement expresses an opinion or value judgment.

Correct Answer: normative

Question 2:

A __________ statement can be tested, even if it's not necessarily true.

Correct Answer: positive

Question 3:

The word "__________" often indicates a normative statement.

Correct Answer: should

Question 4:

Economics uses both positive and __________ statements to analyze and address economic issues.

Correct Answer: normative

Question 5:

Understanding the difference between positive and normative statements helps avoid confusion in economic __________.

Correct Answer: debates

Question 6:

Statements that express opinions about what _ought_ to be are referred to as ___________ statements.

Correct Answer: normative

Question 7:

Claims that can be confirmed or refuted through testing are known as ___________ statements.

Correct Answer: positive

Question 8:

While _____________ statements involve ethical considerations, positive statements deal with objective analysis.

Correct Answer: normative

Question 9:

Statements about the economy that rely on value judgments are considered _____________.

Correct Answer: normative

Question 10:

Empirical analysis is primarily used to evaluate _____________ statements.

Correct Answer: positive

Educational Standards

SOC.9-12.E.1:Develop and apply economic reasoning and decision-making skills. SOC.9-12.E.1.1:Define and apply basic economic concepts of money supply, scarcity, surplus, choice, opportunity cost, cost/benefit analysis, risk/reward relationship, incentive, disincentive, and trade-off to a variety of economic situations. SOC.9-12.E.9.3:Evaluate the impact of voters’ decisions as they relate to governmental economic policy.

Teaching Materials

Download ready-to-use materials for this lesson:

Student Worksheet Classroom Slides Assessment Quiz
Add to Google Classroom

User Actions

Sign in to save this lesson plan to your favorites.

Sign In

Share This Lesson

Related Lesson Plans