1.1.2 - Positive and normative statements

Question 1

What is a positive statement?

Answer 1

a statement which is objective and made without any obvious value judgements or emotions. They can be tested to be proven or disproven and they are often expressed in the form of a hypothesis that can be analysed and evaluated. Statements about the future can be positive if they can be proven or disproven in the future.

Question 2

What is a normative statement?

Answer 2

A normative statement is one which is subjective and based on opinion, so cannot be proven or disproven. It often includes words such as ought, maybe, unwise, should etc. or says that one action is better than another.

Question 3

What is the role of value judgements?

Answer 3

Economists tend to use positive statements to back up normative statements .Value judgements can influence economic decision making and policy. Different
economists may make different judgements from the same statistic