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1.1.2 Positive and normative economic statements

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Question 4
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Consider the following two statements regarding taxation policy:

Statement 1: Increasing the rate of Corporation Tax from 19% to 25% in 2023 reduced foreign direct investment into the UK by £2.4 billion\text{£2.4 billion}£2.4 billion over the following twelve months.

Statement 2: To support small businesses, the government ought to exempt firms with fewer than 50 employees from paying Corporation Tax altogether.

Which one of the following best describes the two statements above?

A

Statement 1 is positive; Statement 2 is normative

B

Statement 1 is positive; Statement 2 is positive

C

Statement 1 is normative; Statement 2 is positive

D

Statement 1 is normative; Statement 2 is normative

Markscheme

1.1.2 Positive and normative economic statements Questions

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

26 exam-style questions on Edexcel A A Level Economics 1.1.2 Positive and normative economic statements. Each one has a worked solution and a mark scheme showing where the marks go.

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