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I' trying to understand between those two , considering that positive question is 'What is" and normative is "What Should Be" please send as many examples you can't to understand and be clear on this issue. If it is in spanish explanation would it be better.
Thanks.

2007-09-26 05:20:35 · 2 answers · asked by WALT 1 in Social Science Economics

2 answers

A positive statement is a statement about what is and that contains no indication of approval or disapproval. ( the statement need not be true)
An increase in the minimum wage will increase the unemployment rate by 100%
The budget deficits is $400 billion dollars.
People do not save money at the rate they did a generation ago.


A normative statement expresses a judgment about whether a situation is desirable or undesirable.
Minimum wage increases are bad.
Large budget deficits should be avoided.
The world would be a better place if people saved more.

2007-09-26 09:32:08 · answer #1 · answered by meg 7 · 1 0

Positive economics is the one that simply states facts and uses empirical evidence. An example statement is: "According to the law of demand, a lower price will yield more quantity sold." Normative economics is the one that takes values into account, and results in statements like: "This tax *should* be reduced." I think both are important, and the best choice usually involves factoring in both types of economics. While precedent and other empirical evidence may suggest one thing, it is never good to simply dismiss legitimate normative theories.

2016-05-19 00:48:18 · answer #2 · answered by ? 3 · 0 0

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