Question on: JAMB Economics - 2012

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.