In: Economics
What is the difference between a normative statement and a positive statement?
A normative statement carries judgment. Normative statements are opinions. They are subjective statements. For example, globalization inflicts economic harm to a country is an opinion.
Since they are opinions, they cannot be proven or disproven. Economists tend to stay away from normative statements.
A positive statement, on the other hand, is a factual statement. They can be tested or proven. These are objective statements.
Government-provided healthcare increases public expenditures.This statement is fact-based and has no value judgment attached to it.
Normative statements are characterised by the modal verbs "should", "would", "could" or "must" while positive statements are concerned about what "is" , "are" or "will be".