positive and normative
Answer (1)
Positive statements are based on facts, evidence, and data. They describe the world as it is. These statements are testable and can be verified as true or false.Example“Higher fuel prices lead to increased transportation costs.”(This is a positive statement because it can be observed and tested with data.)Normative statements are based on opinions, judgments, or beliefs about how the world should be. These are subjective and cannot be tested or proven right or wrong.Example“The government should lower fuel prices to help commuters.”(This is a normative statement because it expresses a value judgment.)SummaryPositive = what is (based on facts)Normative = what ought to be (based on opinion)Both types of statements are important in economics—positive for analysis, normative for policy debates.
