Chapter 2: Problem 16

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

Short Answer

Expert verified

The main difference between positive and normative statements is that positive statements are objective and based on facts, evidence, and data, making them testable, while normative statements are subjective and based on opinions, values, and judgments, making them untestable. Positive statements describe how things are, whereas normative statements describe how things ought to be. For example, a positive statement is: "The unemployment rate in Country X is 5%," while a normative statement is: "The unemployment rate in Country X should be reduced to 3% through government intervention."

Step by step solution

Define Positive Statement

A positive statement is an objective statement based on facts, evidence, and data. It is free of any personal beliefs or opinions and can be tested to determine its true or false status. Positive statements describe the relationship between cause and effect or how things are, without making any judgment or prescribing any action.

Provide an example of a Positive Statement

An example of a positive statement is: "The unemployment rate in Country X is 5%." This statement is based on facts and data, and can be tested by collecting and analyzing data on the unemployment rate in Country X.

Define Normative Statement

A normative statement is a subjective statement based on opinions, values, judgments, or ideas about what ought to be or how things should be, rather than what is or how things are. Normative statements cannot be tested in the same way as positive statements because they rely on personal beliefs and moral values.

Provide an example of a Normative Statement

An example of a normative statement is: "The unemployment rate in Country X should be reduced to 3% through government intervention." This statement is based on the opinion that government intervention is necessary to reduce the unemployment rate, and what the ideal unemployment rate should be (in this case, 3%).

Summarize the difference between Positive and Normative Statements

In summary, the main difference between positive and normative statements is that positive statements are based on facts and can be tested, while normative statements are based on opinions or values and cannot be empirically tested. Positive statements describe how things are, while normative statements describe how things ought to be. Understanding the difference between these two types of statements is important in social sciences and economics, as it helps to distinguish between objective evidence-based analysis and subjective judgment-based arguments.