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Positive vs. Normative Statements, Study Guides, Projects, Research of Economics

Normative Statements. – Prescriptive. – What we should do. – How the world ought to be. Page 3. • Positive Statements. – Can be resolved with evidence ...

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2021/2022

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Positive vs. Normative
Statements
Econ 101
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Positive vs. Normative Statements Econ 101

Positive vs. Normative

  • Positive Statements
    • Descriptive
    • How the world works
  • Normative Statements
    • Prescriptive
    • What we should do
    • How the world ought to be

The Earth is flat.

The Earth is flat.

Positive

The Earth is round.

Positive

The Earth is worth protecting.

The Earth should be destroyed.

The Earth should be destroyed.

Normative

The price of apartments in Ames is too high.

Normative

The price of college tuition is rising because of greater administrative costs.

Lower taxes pay for themselves through faster economic growth.

Lower taxes pay for themselves through faster economic growth.

Positive

Economic prosperity should be shared through lower taxes.

Normative

The poverty rate can be cut in half through a wage subsidy program.