Positive and normative economics

• Positive economics what can it be?

  Is testable- can prove or disprove therefore refutable
• Nominative economics - what is it?

  Opinion driven ‘should’, ‘ought’, ‘best’, ‘worse’, ‘I think’ - A statement that involves a value judgement

  about what ought to be
• Economic policy is influenced by value judgements

  Therefore, some economics is normative

  Economists try to use positive statements and rely

  on data to support their views and policies.