Question

In: Economics

What is the difference between a normative statement and a positive statement?

What is the difference between a normative statement and a positive statement?

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Expert Solution

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".


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