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  3. Economics Edexcel A
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1.1.2 Positive and normative economic statements

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Question 4

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?

Statement 1 is positive; Statement 2 is normative

Statement 1 is positive; Statement 2 is positive

Statement 1 is normative; Statement 2 is positive

Statement 1 is normative; Statement 2 is normative

1.1.2 Positive and normative economic statements Questions

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