The nature of economics
Question 1
Identify which of the following statements are positive and which are normative:
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UK interest rates fell to their lowest recorded level in 2009.
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Unemployment rose to its highest recorded level in 2009.
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Higher interest rates are unfair because they penalise the poorest in society.
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High prices in a particular market encourage entrepreneurs to enter.
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The government should make nursery education free for all parents.
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The earnings of males are higher than those of females.
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Governments should not interfere in the workings of the market economy.
Question 2
Describe the methods used by economists.
Question 3
To what extent is economics a science?