Positive vs. Normative Economics

Objectives:

1. Distinguish between positive and normative economic statements.
2. Analyze economic reasoning through an example given by Tyrion Lannister from Game of Thrones.
3. Evaluate how understanding the distinction can enhance critical thinking about economic issues.

Materials:

• Video: “Tyrion Lannister Understands Positive vs. Normative Economics.”
• Worksheet with discussion prompts.
• Optional – whiteboard, blackboard, or computer technology to make notes

Procedures:

Introduction (5 minutes):

1. Begin by asking students to consider the difference between facts and opinions in everyday discussions.
2. Introduce the concepts of positive economics (descriptive, fact-based) and normative economics (opinion-based, prescriptive).

Instruction (20 minutes):

1. Define Positive and Normative Economics:
   • Positive economics describes what is (e.g., “Unemployment is 5%.”).
   • Normative economics prescribes what ought to be (e.g., “Unemployment should be lower.”).
2. Provide simple examples of each to illustrate the distinction.
3. Video Analysis:
   • Show the video: “Tyrion Lannister Understands Positive vs. Normative Economics.”
   • Discuss as a class:
     • What normative claim does Tyrion make about the fighting pits?
     • What positive claim does Hizdahr make in response?