Economic inquiry and choices
| English | 中文 | Pinyin |
|---|---|---|
| normative/ˈnɔːmətɪv/ | 规范性的 | guī fàn xìng de |
| opportunity cost/ɒpəˈtjuːnɪti kɒst/ | 机会成本 | jī huì chéng běn |
A decision you can investigate
- A news report says a new rail line is efficient; a comment says it is unfair.
- These claims ask different questions about resource use and distribution.
Build the explanation
- A positive statement can be tested against evidence; a normative 规范性的 statement includes a value judgement.
- Models simplify reality to reveal mechanisms; explain which assumptions make the mechanism plausible.
Match the terms to their precise meanings.
Use these definitions in the particular context of Economic inquiry and choices.
Work through the evidence
- Building the rail line uses land and labour that could support another project. Its opportunity cost 机会成本 is the benefit of the best rejected project.
- Assess efficiency and equity separately before considering trade-offs between them.
Which statement is normative?
Building the rail line uses land and labour that could support another project. Its opportunity cost is the benefit of the best rejected project. Assess efficiency and equity separately before considering trade-offs between them.
Test the limits
- Do not label every uncertain forecast normative. A forecast may still be testable.
- Explain assumptions such as other factors remaining constant before transferring a model to a real case.
Which caution belongs to this particular task?
Do not label every uncertain forecast normative. A forecast may still be testable. Explain assumptions such as other factors remaining constant before transferring a model to a real case.
The explanation in this lesson makes a conditional claim; relevant context and evidence still matter.
Explain assumptions such as other factors remaining constant before transferring a model to a real case.
Apply and explain your answer
- Which statement is normative?
- The rail project should prioritise equality over profit.
Choose the two statements supported by this lesson.
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- normative: Containing a judgement about what ought to be.
- opportunity cost: The benefit of the next-best alternative forgone.
Building the rail line uses land and labour that could support another project. Its opportunity cost is the benefit of the best rejected project. Assess efficiency and equity separately before considering trade-offs between them.
Do not label every uncertain forecast normative. A forecast may still be testable. Explain assumptions such as other factors remaining constant before transferring a model to a real case.
A positive statement can be tested against evidence; a normative statement includes a value judgement.