How value judgements influence economic decision making and policy
A value judgement is a personal or moral view about what ought to happen. Economists and governments use value judgements to decide which policies to pursue, even when the evidence is the same.
Real World
Both Labour and Conservative politicians agreed the NHS needed more funding (positive evidence) in 2019, yet proposed different solutions because they held different value judgements about taxation and private provision.
Exam Focus
When asked how value judgements affect policy, always link a specific value judgement to a specific policy outcome to access the higher mark bands.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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