1.1.2 Positive & Normative Statements

• Positive statements are objective, they can be tested with factual evidence.
• Characteristics of positive statements

  1. Objective
  2. Can be tested with factual evidence.
  3. Can be rejected or accepted.
• Normative statements subjective, value judgements based on opinion rather than factual evidence.
• Characteristics of Normative Statements

  1. Subjective
  2. Based on value statements.
  3. Opinion based
• Value judgements are judgements on the worth of something, based on the opinion of the person making the judgement.
• Value judgements can influence economic decision making and policy.

  Different economists may make different judgements from the same statistic.