Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 2: Q16 (page 44)

What is the difference between a positive and a normative statement?

Short Answer

Expert verified

Positive Statements show actual situation. Normative Statements show how the situation should be.

Step by step solution

01

Positive Statement Concept 

Positive Statement shows how a situation actually is. It denotes Economic Problems, it is descriptive in nature. It is objective & verifiable.

Example : Actual Growth level in economy is x%.

02

Normative Statement Concept 

Normative Statement shows how a situation should be and denote Economic solutions. It is subjective, suggestive & hence not verifiable.

Example : Growth rate in economy should be y%.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Marie has a weekly budget of \(24, which she

likes to spend on magazines and pies.

If the price of a pie is \)12, what is the maximum number of pie she could buy in a week?

Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?

During the Second World War, Germany’s

factories were decimated. It also suffered many human

casualties, both soldiers and civilians. How did the war

affect Germany’s production possibilities curve?

Marie has a weekly budget of \(24, which she

likes to spend on magazines and pies.

If the price of a magazine is \)4 each, what is

the maximum number of magazines she could buy in a

week?

Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but

do they have special expertise to judge whether or not

the policy should be undertaken?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free