Positive and Normative statements

What are positive statements

Objective statements that can be tested, amended or rejected by referring to the available evidence.

Give two examples of positive statements

1. If the government raises the tax on beer, this will then lead to a fall in profits for brewers

2. Higher mortgage interest rates will eventually reduce the average level of house prices.

What are normative statements

They are subjective statements, i.e.- they carry value judgements

Give one examples of normative statements

1. High employment is more harmful to a country such as the UK than high rates of inflation

What is a key examiner tip for this topic

IF IT CAN BE TESTED THEN IT IS POSITIVE