What are positive & normative statements?
Positive statements are verifiable statements. They are either true or untrue, but can be proven true or untrue by data or observations. So, “the moon is made of cheese” is technically a positive statement (can be proven untrue), as well as the statement “on average, women earn less than men”.
Normative statements are value judgements. They are influenced by morals and opinions and are not necessarily consistent from person to person. Some examples are “women should earn the same as men” and “marijuana should be legalized”.
Positive Statements are the objective statements which can be verified,amended or denied on the basis of available evidence.Positive economics deals with objective explanation & the verification & rejection of theories,for example:
i)A fall in incomes will lead to a rise in demand.
ii)The rising price of crude oil in world markets will lead to an increase in riding of bicycles.
iii)A fall in average temperature will increase the demand for winter jackets & caps.
Normative Statements are value judgements. We can say that it’s a subjective statement based on opinions rather than a fact that can be verified on the basis of available observations.Normative statements vary from person to person as it is based on opinions.For exa:
i)The govt. is right in its place to introduce a ban on smoking in public places.
ii)Unemployment is more harmful than inflation.
