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Critical Thinking

Dr. Katherine Sauer


Global Economic Issues
ECON 241
A. Positive vs Normative Statements

A positive statement is a claim about what is, was, or will be.


- It is objective (no value judgment/approval/disapproval).
- It can be verified.
- It can be false.
- It can be a prediction.

A normative statement is a claim expressing a value judgment.


- It is subjective (opinion).
- It can not be verified.
Examples:

- US GDP in 2006 was about $12 trillion.


- US GDP per capita is about $1,000.
- Worldwide, income is distributed unequally.
- Worldwide, income is distributed unfairly.
- Illegal immigrants are a drain on a country’s social services.
- The number of migrant workers in the US is too high.
- If a country with a fixed exchange rate is facing a BoP crisis
it should borrow currency from the IMF.
- If a country has an undervalued currency for a long time and
expands the domestic money supply, inflation is likely to
occur.
- When domestic firms are hurt by foreign competition,
placing
tariffs on imports is a good idea.
- When domestic firms are hurt by foreign competition,
B. How to be critical of a claim:

Ask yourself
- Is the claim positive or normative?

If it is positive:
- What evidence is there to support the claim?
- How reliable is the evidence?
- Are there other ways of interpreting the
evidence?

If it is normative:
- Is the normative claim based on any
positive claims?
- Are those positive claims supported by
reliable evidence?
C. Critical Thinking Skills

- identifies relevant information

- incorporates relevant viewpoints/ stakeholders

- identifies relevant assumptions

- considers implications / consequences for alternative courses of


action

- conclusion is clear and generally follows from prior analysis

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