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