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Is Economics A Science

This document discusses the differences between positive and normative economic statements. Positive statements are objective and can be tested or verified based on evidence, while normative statements are subjective opinions that cannot be proven or disproven. It also provides examples of activities for students, including distinguishing positive from normative statements, relevant TOK essay titles, and a homework activity to research prominent economists.

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94 views3 pages

Is Economics A Science

This document discusses the differences between positive and normative economic statements. Positive statements are objective and can be tested or verified based on evidence, while normative statements are subjective opinions that cannot be proven or disproven. It also provides examples of activities for students, including distinguishing positive from normative statements, relevant TOK essay titles, and a homework activity to research prominent economists.

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Rutwik Official
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Positive and normative economics

Key terms:

Positive economic statement - objective statements that can be tested, amended or


rejected by referring to the available evidence.

Normative economic statement - a subjective statement of opinion which can neither


be proven or dis-proven.

1. Opening question: How old is economics and is it a science?

Investigate the following question: how old is economics as a subject?

Activity 2: Which of the above statements are applicable to economics as a science:

Natural sciences Social sciences


Deals with natural events Concerns human behaviour
Arose from curiosity about the world Arose from curiosity about individuals
Proof is easy to establish Providing hard evidence is difficult
Research completed by repeating an Research is completed via observation
experiment under controlled conditions and empirical data
Research faces technical limitations such as Research is hindered by the complexity
the inability to conduct precise of a field in which single variables cannot
measurements be controlled for easily
Data is more likely to be quantitative Data is more likely to be qualitative

© Mark Johnson,
InThinking www.thinkib.net/Economics 1
Activity 3: Positive or normative statement exercise

Are the following statements positive, normative or simply false?

1. Following the UK referendum both the UK stock market and value of the currency
fell in value?

2. The result of the UK referendum will cause a fall in economic growth in the UK?

3. The USA has a higher quality of life for its citizens than Canada?

4. The USA has a lower GDP per capita than Canada

5. Lowering taxes will increase personal disposable incomes

6. Greece is a middle income country?

7. Reducing taxes will improve living standards in an economy

8. The USA electorate should not have elected Donald Trump as their President

9. The Rwandan economy has been one of the fastest growing in Africa in the last 10
years

10. Life is good now in Rwanda – one of the best that Africa has to offer

11. The G5 countries should donate more of their income towards development in the
poorest nations

China reports a GDP growth rate of 9% for the year 2022. To what extent can this be
considered a 'positive statement'? How can we be sure of the reliability of this data?

© Mark Johnson,
InThinking www.thinkib.net/Economics 2
Activity 4: Relevant TOK essay titles

What criteria should be adopted for evaluating normative statements in economics?

How do we test knowledge claims in economics? Should all knowledge claims in economics
be testable? If a claim is not testable, is it meaningless?

What are the roles played by abstract reasoning and concrete evidence in constructing
economic theory?

To what extent is economics value-free?

Is there a different method of justifying qualitative rather than quantitative knowledge


claims? If so, does this lead to one or other being inherently more reliable

What distinguishes a social science from a natural science? Which elements of both does the
subject of economics include?

Is there a “social scientific method” as opposed to a “natural scientific method”? What might
be the similarities and differences?

Activity 5: Homework activity

Research other leading economists and present your findings to the class. Economists that
you may wish to investigate include:

• Alfred Marshall
• Alan Greenspan
• Adam Smith
• Maynard Keynes
• Milton Friedman
• Amartya Sen
• Benjamin Graham
• Emily Balch
• Karl Marx.

© Mark Johnson,
InThinking www.thinkib.net/Economics 3

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