What is the difference between positive and normative statements?

A positive statement is one that can proved right or wrong by the use of evidence. For example ‘Volkswagens share price fell by 34%’ or ‘the interest rate in the UK is 0.5%’. These statements can be supported by evidence and are therefore positive statements.   A Normative statements is one based on opinions. For… Continue reading What is the difference between positive and normative statements?

The Continuum of Market Structures

In most economic textbooks and lessons we teach four market structures. Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly. And we tend to get told that these structures are completely independent and unique from each other. However, this can cause some confusion amongst students, especially those who actually stop and think about it for a minute… Continue reading The Continuum of Market Structures