Positive statements are thus the opposite of normative statements. ... Positive statements are based on empirical evidence. For examples, “ An increase in taxation will result in less consumption” and “A fall in supply of petrol will lead to an increase in its price”.
What is an example of a positive statement and a normative statement?
The validity of a positive statement is verifiable or testable in principle, no matter how difficult it might be. Example 1: The weight of the earth is 6 septillion (6 × 10 24 ) metric tons. Example: An increase in the minimum wage increases unemployment among teenagers . Normative statements contain a value judgment.
Which is a positive statement?
A positive statement is one that can be tested and verified and is not based on a value judgment . For example, stating that the current level of unemployment is 4.1% is positive because it can be tested and either verified or falsified.
What are some examples of positive and normative economic statements?
An example of positive economics is, “ an increase in tax rates ultimately results in a decrease in total tax revenue ”. On the other hand, an example of normative economics is, “unemployment harms an economy more than inflation”.
What are some examples of positive economic statements?
Here’s an example of a positive economic statement: “ Government-provided healthcare increases public expenditures .” This statement is fact-based and has no value judgment attached to it. Its validity can be proven (or disproven) by studying healthcare spending where governments provide healthcare.
What is an example of a normative statement?
Samples of normative economic statements include “ Women should be provided higher school loans than men ,” “Laborers should receive greater parts of capitalist profits,” and “Working citizens should not pay for hospital care.” Normative economic statements typically contain keywords such as “should” and “ought.”
How do you tell if a statement is positive or normative?
Positive statements are fact-based, but normative statements are based on opinions .
Can a positive statement be false?
A statement of fact or a hypothesis is a positive statement. Note also that positive statements can be false , but as long as they are testable, they are positive.
What is another word for positive statement?
| assertion claim | declaration affirmation | contention profession | statement insistence | avowal pronouncement |
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Which statement is a positive economic statement?
Positive economic statements are statements of fact that imply no value judgment . Notice that the correct response merely stated what would happen if minimum wage went up and made no statement about whether that was good or bad.
What is the difference between positive and normative science?
Positive Economics refers to a science which is based on data and facts. Normative economics is described as a science based on opinions, values, and judgment . Positive economics is descriptive, but normative economics is prescriptive. ... On the other hand, normative economics pass value judgments.
Which if the following is an example of a positive as opposed to normative statement?
Which of the following is an example of a positive, as opposed to normative, statement? When the minimum wage is increased, unemployment is a predictable consequence.
What’s the four factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
What is positive analysis?
Positive Analysis
Descriptive, factual statements about the world are referred to as positive statements by economists. ... Positive analysis, accordingly, uses scientific principles to arrive at objective, testable conclusions .
Which of these would be considered a normative statement?
A normative statement is one that makes a value judgment . Such a judgment is the opinion of the speaker; no one can “prove” that the statement is or is not correct. Here are some examples of normative statements in economics: We ought to do more to help the poor.
Which is the best example of a normative economic statement?
An example of a normative economic statement is as follows: The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm . This is a normative statement, because it reflects value judgments.
