1.1.2 - positive and normative statement

    Cards (4)

    • A positive statement is a statement which is objective and made without any obvious value judgements or emotions
    • A normative statement is one which is subjective and based on opinion, so cannot be proven or disproven.
    • 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, for example rising inflation could mean different things.