Question

Examples of positive and normative statementa in economics

Answer 1

Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence. Positive economics deals with objective explanation and the testing and rejection of theories. For example: A fall in incomes will lead to a rise in demand for own-label supermarket foods.

A normative statement carries judgment. Normative statements are opinions. They are subjective statements. For example, globalization inflicts economic harm to a country is an opinion. A positive statement, on the other hand, is a factual statement.