CAIE A-Level Economics 1.2.2 Positive vs normative statements

CAIE A-Level Economics 1.2.2 Positive vs normative statements
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise separating testable economic claims from value judgements in policy, tax, inflation, inequality and welfare contexts.

How this is tested

  • distinguish factual statements from value judgements in policy or tax contexts
  • classify newspaper or data-based statements as positive or normative

Question 1

[Maximum number: 1]

The following appeared in a newspaper article.
'The economies of the poorest nations have large international debts; the richest nations should cancel the debts of these nations and reduce poverty.'

What is the nature of each statement?

poorest nations have
large international
debts

richest nations should
cancel these debts to
reduce poverty

normative

normative

normative

positive

positive

positive

positive

normative