Positive and Normative statements Flashcards
1
Q
what is the difference between a positive and a normative?
A
positive statements deal with facts and can be tested, while normative statements involve value judgments and opinions about what should be done
2
Q
give an example of where a value judgement may be in economics
A
whether or not to increase the minimum wage
3
Q
what is a positive statement?
A
positive statements are statements that are objective and fact-based
4
Q
what is a normative statement?
A
normative statements in economics are statements that make a value judgment about what ought to be or what should be