The Regional Mayor recently announced a plan to cap residential rent increases in the metropolitan private rental sector.
Under the proposed legislation, rent rises for existing tenants will be capped at the rate of inflation (CPI) for the next four years. City officials estimate this policy will directly affect 85,000 households and save the average renting family approximately £140 per month. The Mayor insisted that intervention is vital because "the private rental market is fundamentally broken and unfair to young families."
However, Sarah Jenkins, spokesperson for the Landlords' Association, warned of severe repercussions. "Rent controls are a disastrous policy that will lead to a decline in housing quality and reduce the overall supply of available rental homes," she argued. "The government should instead focus on cutting planning red tape to encourage private development." Conversely, tenants' rights groups welcomed the move, stating that housing is a basic human right and the government has a moral duty to protect vulnerable tenants from exploitation.
With reference to Extract A, explain the difference between a positive statement and a normative statement.
85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.