1. Year 12 AS Economics
Ms Haron

2. Start of lesson drills Planner on the desk Pen/stationary available
19/09/2018
Start of lesson drills
Planner on the desk
Pen/stationary available
Folder/Exercise book on the desk
Date and title copied
1.1.2 Positive and normative economic statements
Ready to learn
Reminder of expectations every lesson
Theme 1 – Microeconomics Positive and normative economic statements

3. Theme 1 1.1 – The nature of Economics
1.1.2 Positive and normative economic statements
a) Distinction between positive and normative economic statements
b) The role of value judgements in influencing economic decision making and policy

4. Last lesson we covered:
19/09/2018
Last lesson we covered:
a) Thinking like an economist: the process of developing models in economics, including the need to make assumptions
b) The use of the ceteris paribus assumption in building models
c) The inability in economics to make scientific experiments
Theme 1 – Microeconomics Positive and normative economic statements

5. Positive vs Normative - Refresh
19/09/2018
Positive vs Normative - Refresh
Theme 1 – Microeconomics Positive and normative economic statements

6. Positive and Normative economics
19/09/2018
Positive and Normative economics
Positive economics
Normative economics
The scientific or objective study of the subject
The study or presentation of public policy
Statements can be supported or refuted (proven true or false) by evidence
Statements can’t be supported or refuted because they are values
e.g. The service sector will grow by 30% in size over the next 5 years
Ultimately they are opinions about how economies and markets should work
Economists will wait 5 years to support/refute the statement but it can be proved/disproved
e.g. the government should increase the state pension
Quick question – what does refute mean?
Norm – the government should increase the state pension
Positive – the average pensioner has a disposable income of 40% of the average worker
Theme 1 – Microeconomics Positive and normative economic statements

7. 19/09/2018
Value judgments
A value judgement is a subjective statement of opinion rather than a fact that can be tested by looking at the available evidence
Normative statements are subjective statements – i.e. they carry value judgments. For example:
Unemployment is more harmful than inflation
The government is right to introduce a ban on smoking in public places.
Resources are best allocated by allowing the market mechanism to work freely
Focusing on the evidence is called adopting an empirical approach – evidence-based work is becoming more and more important in shaping different government policies and how much funding to give to each.
Theme 1 – Microeconomics Positive and normative economic statements

8. Positive and Normative economics
19/09/2018
Positive and Normative economics
When economists want to influence policy debates, they use both normative and positive economics because they use positive economics to back up a normative statement.
Theme 1 – Microeconomics Positive and normative economic statements

9. 19/09/2018
Diamond nine
Sort the following statements between Normative and Positive
Remind the class that in their expectations they asked for video clips.
Theme 1 – Microeconomics Positive and normative economic statements

10. 1. Pollution is the most serious economic problem
19/09/2018
1. Pollution is the most serious economic problem
2. A fall in incomes will lead to a rise in demand for own-label supermarket foods
3. If the government raises the tax on beer, this will lead to a fall in profits of the brewers
4. The congestion charge for drivers of petrol-guzzling cars should increase to £25
5. The government should increase the minimum wage to £7 per hour to reduce poverty
6. The rising price of crude oil on world markets will lead to an increase in cycling to work
7. The retirement age should be raised to 70 to combat the effects of our ageing population
8. The government should enforce minimum prices for beers and lagers sold in supermarkets and off-licences in a bid to control alcohol consumption
9. A reduction in income tax will improve the incentives of the unemployed to find work
PLENARY
Theme 1 – Microeconomics Positive and normative economic statements

11. 19/09/2018
Positive
2. A fall in incomes will lead to a rise in demand for own-label supermarket foods
3. If the government raises the tax on beer, this will lead to a fall in profits of the brewers
6. The rising price of crude oil on world markets will lead to an increase in cycling to work
9. A reduction in income tax will improve the incentives of the unemployed to find work
Theme 1 – Microeconomics Positive and normative economic statements

12. Normative 1. Pollution is the most serious economic problem
19/09/2018
Normative
1. Pollution is the most serious economic problem
4. The congestion charge for drivers of petrol-guzzling cars should increase to £25
5. The government should increase the minimum wage to £7 per hour to reduce poverty.
7. The retirement age should be raised to 70 to combat the effects of our ageing population.
8. The government should enforce minimum prices for beers and lagers sold in supermarkets and off-licences in a bid to control alcohol consumption
Theme 1 – Microeconomics Positive and normative economic statements

13. In the news today – P or N? 19/09/2018
Theme 1 – Microeconomics Positive and normative economic statements

14. In the news today – P or N? 19/09/2018
Theme 1 – Microeconomics Positive and normative economic statements

15. 19/09/2018
Theme 1 – Microeconomics Positive and normative economic statements

16. 19/09/2018
Quick activity
Go onto the BBC news website and try to find an article which contains a Positive economic statement and one that contains a Normative economic statement
Theme 1 – Microeconomics Positive and normative economic statements

17. Today we have covered 1.1.2 Positive and normative economic statements
19/09/2018
Today we have covered
1.1.2 Positive and normative economic statements
Distinction between positive and normative economic statements
The role of value judgements in influencing economic decision making and policy
Theme 1 – Microeconomics Positive and normative economic statements

18. 19/09/2018
Supported homework
You now have in class time to individually complete the net migration questions on the hand out
I have some spare net migration sheets
Theme 1 – Microeconomics Positive and normative economic statements

19. Homework – No new HW today!
19/09/2018
Homework – No new HW today!
Reminder: To complete the two Net migration questions on the hand out that was given to you yesterday
Due Tuesday 15th September - Period 2
Theme 1 – Microeconomics Positive and normative economic statements

20. 19/09/2018
Expectations
Theme 1 – Microeconomics Positive and normative economic statements