Here is a summary of the contents of the powerpoint which moves from reviewing opportunity cost to a detailed lesson on the positive/normative distinction.

1. AS Economics Positive and Normative Statements

2. vs Read the material and then answer the questions. Be prepared to explain your answers!

3. Today • Review opportunity cost • Understand the difference between a positive and normative statement

4. What is the difference? • ‘lf the state pension is cut in half, 100,000 pensioners will die of hypothermia in a cold winter.‘ • ‘The state pension should be cut in half because pensioners are parasites on society.’

5. Positive Statements • A positive statement is a statement that can be tested against evidence to see whether it is true or false. ‘The moon is made of green cheese’ is a positive statement even though we know it is completely false.

6. Normative Statements • A normative statement is a value judgement or personal opinion with which others may disagree. A normative statement cannot be tested to see if it is true or false.

7. Why do you need to know this? • Whenever you are reading articles on current affairs it is important to be able to distinguish between objective and subjective statements. • Often, the person writing an article has a particular argument to make and will include subjective statements about what ought to be or what should be happening. • Their articles carry value judgements; they are trying to persuade you of the particular merits or demerits of a policy decision. These articles may be wholly or partially lacking in objectivity.

8. Have a go at these! 1. Cut-price alcohol has increased the demand for alcohol among teenagers 2. The government is right to introduce a ban on smoking in public places. 3. The retirement age should be raised to 70 to combat the effects of our ageing population. 4. Chellaston Academy should take less students. 5. Pollution is the most serious economic problem 6. If the government raises the tax on beer, this will lead to a fall in profits of the brewers 7. Children who live in Melbourne should go to school at Sinfin.

9. Immigration: what do you think?

10. Over to you! • Write down 2 normative statements about immigration • Thinks about ‘ought to’ and ‘should’ • Now read the article and identify positive statements

11. Today • Review opportunity cost • Understand the difference between a positive and normative statement