1.1.2 Positive and Normative economic statements
Positive and Normative economic statements 1.1.2
A positive statement is one that is a scientific or objective study which can either be supported or refuted.
A normative statement is concerned with value judgements and cannot be supported or refuted.
Statements do not have to be true to be positive, as long as it is capable of being proven (even in the future) it can be considered a positive statement.
Normative statements are not opinion, instead they are called value judgement.
Examples of positive statements:
"one direction is a french band"
"the current rate of VAT is 20%"
Examples of normative statements:
"minimum wage ought to be £20/h"
"the fact that under 18s cannot vote is unfair"
"University fees should be abolished"
Positive analysis is often called upon to form value judgements. For example:
Cigarettes contain poison (positive)
Cigarettes can cause lung cancer (positive)
Therefore cigarettes should be banned (normative)
A positive statement is one that is a scientific or objective study which can either be supported or refuted.
A normative statement is concerned with value judgements and cannot be supported or refuted.
Statements do not have to be true to be positive, as long as it is capable of being proven (even in the future) it can be considered a positive statement.
Normative statements are not opinion, instead they are called value judgement.
Examples of positive statements:
"one direction is a french band"
"the current rate of VAT is 20%"
Examples of normative statements:
"minimum wage ought to be £20/h"
"the fact that under 18s cannot vote is unfair"
"University fees should be abolished"
Positive analysis is often called upon to form value judgements. For example:
Cigarettes contain poison (positive)
Cigarettes can cause lung cancer (positive)
Therefore cigarettes should be banned (normative)
