Syllabus: Pearson - AS Level Economics
Module: 1.1 Nature of Economics
Lesson: 1.1.2 Positive and Normative Economic Statements

Introduction

This article is built around Pearson Edexcel’s AS Level Economics A (1.1.2), which falls under Theme 1: Introduction to Markets and Market Failure. It focuses on helping students distinguish between positive and normative economic statements and understand how value judgements influence decisions and policy. This foundational skill enables learners to think critically, identify bias, and evaluate arguments—key capabilities for both assessment success and real-world economic literacy.

Key Concepts

The syllabus outlines two essential areas in this topic:

• Positive statements: Objective claims that can be tested or proven true/false through evidence (e.g. “An increase in VAT reduces household spending”).

• Normative statements: Subjective claims based on opinion or value judgements (e.g. “The government should increase VAT to reduce the deficit”).

Also introduced:

• The role of value judgements in shaping policies, public debates, and economic conclusions.

• The importance of recognising bias in economic arguments, especially in political or media discourse.

Students should be able to:

• Clearly define both types of statements.

• Categorise examples accurately.

• Explain the implications of value-laden decision-making.

Real-World Relevance

The difference between positive and normative economics comes alive when students explore the news. Take this example:

• Positive: “The UK’s corporation tax rate was 19% in 2022.”

• Normative: “Corporation tax should be raised to fund public services.”

During COVID-19, debates around lockdowns, furlough schemes, and NHS funding were full of both. By analysing headlines, government reports, and manifestos, students can see how value judgements shape policies.

A classroom activity could include evaluating two contrasting political speeches or news articles, asking students to identify which parts are evidence-based and which are opinion-based.

How It’s Assessed

This topic is assessed through a mix of multiple-choice, short-answer, and extended writing questions. Typical command words include:

• Identify: Pinpoint whether a statement is positive or normative.

• Explain: Describe why a statement is normative and what value judgement it reflects.

• Evaluate: Consider how value judgements affect policy decisions or debates.

Example exam-style question:

“Distinguish between a positive and a normative statement, using examples.” (4 marks)

Or:

“Discuss how value judgements may influence economic policy decisions.” (10 marks)

Assessment often rewards clarity, correct terminology, and examples drawn from real life or current affairs.

Enterprise Skills Integration

This topic develops skills that go well beyond economics:

• Critical thinking: Students learn to spot hidden assumptions and challenge opinions that are presented as facts.

• Communication: By learning to frame their arguments clearly (and spot others’ biases), students become more persuasive.

• Decision-making: Understanding the role of value judgements helps students weigh options where outcomes involve trade-offs.

In enterprise contexts, this plays out in debates like: “Should a business prioritise profit or environmental responsibility?” These aren’t just theoretical—they shape how future entrepreneurs make real decisions.

Careers Links

This topic links directly to Gatsby Benchmark 4 (Linking curriculum learning to careers) and Benchmark 5 (Encounters with employers and employees).

Relevant career pathways include:

• Policy analysis (e.g. HM Treasury, local government)

• Journalism (especially economic and political reporting)

• Law (constructing and deconstructing arguments)

• Research roles (think tanks, NGOs, consultancy)

Teachers can bring this to life by inviting guest speakers, setting up mock debates, or linking to live job descriptions that demand critical reasoning.

Teaching Notes

Top tips:

• Use real articles, manifestos, or policy papers to highlight the difference between factual claims and opinions.

• Practice breaking down complex arguments into individual statements students can categorise.

• Reinforce that both positive and normative statements have value—understanding when and how they’re used is the real skill.

Common pitfalls:

• Students often assume any statement with a number is positive, even if it includes a value judgement.

• Some struggle to move beyond definitions to application. Frequent, short exercises help.