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Complete each sentence with the correct ending, A-H, below.






1. The objective of positive economics is

2. The purpose of normative economics is

3. When the government levies taxes on goods

4. In economics, as in other sciences, there are

5. In dealing with normative judgements

 

A. the price of wheat reduces.

B. the prices will go up.

C. to analyse facts in reality.

D. to provide competent and comprehensive investigation.

E. to provide a choice how the economy should act.

F. problems to be resolved.

G. positive and normative economics.

H. research generally makes no sense.


3. Do the following statements agree with the information given in the text?

Use TRUE if the statement agrees with the information

FALSE if the statement contradicts the information

NOT GIVEN if there is no information on this

1. The purpose of positive economics is controversial: on the one hand, it should give answers to questions about current economic problems; on the other hand, it foresees the behaviour of the economy in future.

2. When applying normative economics, we make decisions greatly depending on our value judgements.

3. Competent and comprehensive research can resolve entirely all important issues in positive economics.

4. Pensioners are popular users of medical service, that is why the government should build more hospitals for them.

5. There is an interconnection between positive and normative economics.

 

4. Complete the summary using the list of words, A – N, below.

The economic science 1 ________ scientific, i.e. objective explanations of how the economy functions. In this 2 _______ it applies the 3 ________ approach where economists study what it is and what it can be in reality. If an issue in positive economics is scientifically proved, there is no place to any 4 _________ left. But there can be different 5 ________ views on 6 _______ problems which provide 7 _______ for further research. Economists may have their own 8 ______ judgements on economic issues. Here they deal with 9 _______ economics where it becomes difficult to 10 _______ disputes. However, positive economics shows the distinct 11 _______ of how to make a normative choice.

  1. disagreement
  2. imply
  3. subjective
  4. scope
  1. clarify
  2. claims
  3. searches for
  4. unresolved
  1. implications
  2. regard
  3. positive
  4. value
  1. persuasion
  2. normative
 

 

Choose the correct letter A, B, C or D.

Which of the following best describes the main idea of the text?

A. Competent research is an integral part in economics.

B. In every economic issue there are both positive and normative sides.

C. Normative statements cannot be proved.

D. The two branches of economics exist separately from each other.

 

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