The privatization of public enterprises will le... - JAMB Economics 2012 Question

The statement "The privatization of public enterprises will lead to efficient management of resources in the economy" is a normative statement. Normative statements express opinions, values, or beliefs about what should be, and they are subjective. This statement implies that privatization is good because it will lead to efficient resource management, which is an opinion or a value judgment about the desirability of privatization.

• Normative reasoning: Deals with value judgments and what ought to be.
• Inductive reasoning: Moves from specific observations to a general conclusion.
• Deductive reasoning: Moves from general principles to specific conclusions.
• Positive reasoning: Deals with objective facts and can be tested and verified.