 Normative and Positive statements are made all the time in the field of Economics but we have to know the difference in order to use them correctly. Positive Statements has no opinions and is objective to an extent. An example of a positive statement is- The GDP per capita is 59,000 per person in 2017(These statements include facts). Normative Statements is a value judgement or simply put, an opinion. An example of a normative statement is,“The increase in college graduations has reduced unemployment in India”. The statement has made a deduction that unemployment has reduced based on an assumption that college graduations have increased - but there is no data provided, so it is an opinion. However, an important detail is that a statement that is false and can be disproved is still a positive statement even though if it is incorrect.
author | renutyagi |
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permlink | normative-vs-postive-statements |
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