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1.1.2 Positive and normative economic statements

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Question 17

Consider the following two statements regarding urban transport policy:

Statement 1: To reduce traffic congestion in the metropolitan area, the local authority should increase the daily congestion charge from £15 \pounds 15\,£15 to £18\pounds 18£18.

Statement 2: An increase in the congestion charge to £18 \pounds 18\,£18 will reduce daily private vehicle entries by 12% over the next twelve months.

Which one of the following best describes these two statements?

Statement 1: Positive; Statement 2: Positive

Statement 1: Positive; Statement 2: Normative

Statement 1: Normative; Statement 2: Positive

Statement 1: Normative; Statement 2: Normative

1.1.2 Positive and normative economic statements Questions

  1. A Level
  2. /Economics
  3. /1.1.2 Positive and normative economic statements