Positive and Normative Economic Statements

Question 1

What is a Positive Statement?

Answer 1

Statement of fact which can be tested by looking at evidence and either proved or refuted
Can be proven to be true or false
Based on economic theory

Question 2

What does a Positive Statement do?

Answer 2

Look at issues objectively

Suggests economic relationship can be tested

Question 3

What is a Normative Statement?

Answer 3

Statement which can’t be proved or tested using evidence
It is a value judgement
Subjective